The Federal Government has launched $500 million domestic bond, about three weeks after hinting at the action.
Unveiling the bond in Lagos on Monday, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, stated that the launch was a bold step towards economic transformation 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, which is set to leverage the Nigerian financial system, including the Securities and Exchange Commission, the banking system, and investment bankers, 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 spearheaded by President Bola Ahmed Tinubu.
FEDERAL MINISTRY OF FINANCE ABUJA
— Federal Ministry of Finance (@FinMinNigeria) August 15, 2024
PRESS RELEASE
NIGERIA MAKES HISTORY WITH $500 MILLION BOND LAUNCH: A BOLD STEP TOWARDS ECONOMIC TRANSFORMATION – EDUN SAYS
In a groundbreaking move, the Federal Government of Nigeria has launched a $500 million domestic bond, marking a… pic.twitter.com/im2Re8ymdY
In his presentation at the event, the minister stressed that the financial market thrives on creativity and innovation and that it is essential to encourage investors to participate in this strategic opportunity.
He also highlighted the positive outcomes already being seen from the current economic policies, noting that government revenue and expenditure have been significantly revamped, and the trade balance is improving.
Edun reiterated the government’s efforts in revitalizing the agricultural sector, which is taking on a new and promising direction.
The minister underscored the importance of dollar funding, particularly in stabilizing the exchange rate, which he said is vital for the country’s economic stability.
He stressed that this new bond initiative is another crucial step in bolstering Nigeria’s economy, expressing optimism that Nigeria is poised to become a continental financial hub, where other African nations can raise capital and drive economic growth.
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.
