Nigeria has launched a $500 million domestic bond, marking a significant milestone in the country’s economic reform and development journey.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun unveiled the Series I USD500 Million Domestic FGN US Dollar Bond in Lagos on Thursday.
Edun said this is a groundbreaking move by the Federal Government as Nigeria makes history in a bold step towards economic transformation.
The minister in a press release signed by his spokesman, Mohammed Manga stated that the $500m bond is poised to attract both local and international investors.
“This historic initiative is aimed at raising a minimum of $500 million from both local and international investors, marking a significant step in Nigeria’s ongoing economic reform and development efforts” he said.
Edun stated further that the bond issuance is set to leverage the Nigerian financial system including the Securities and Exchange Commission, the banking system and investment bankers.
He added that it represents a critical effort to attract foreign currency held by Nigerians abroad as well as other international investors who believe in the macroeconomic reform initiatives of by President Bola Tinubu.
In his presentation at the event, Edun said the financial market thrives on creativity and innovation and that it is essential to encourage investors to participate in this strategic opportunity.
While highlighting the positive outcomes already being seen from the current economic policies, he noted that government revenue and expenditure have been significantly revamped, and the trade balance is improving.
Edun informed of the government’s efforts in revitalizing the agricultural sector, which is taking on a new and promising direction.
The minister informed further of the present administration’s successful interventions to reduce inflation and poverty, such as the removal of levies on food imports and the direct transfer of funds to the most vulnerable citizens.
He stressed that this new bond initiative is another crucial step in bolstering Nigeria’s economy.
Edun underscored the importance of dollar funding, particularly in stabilizing the exchange rate which he said is vital for the country’s economic stability.
Addressing the challenges faced by African nations in the international capital markets, the minister explained that the rating systems often do not favour the continent. In response, he assured that Nigeria aims to take the lead.
With this historic bond launch, he expressed optimism that Nigeria is poised to become a continental financial hub where other African nations can raise capital and drive economic growth.
“Thus, the minister’s visionary leadership and commitment to innovation have set the stage for a brighter economic future, especially now that Nigeria has taken the lead in harnessing diaspora savings and driving macroeconomic reforms, the country is well on its way to becoming a continental financial hub, driving growth and prosperity for generations to come,” Manga said.
