The federal government is planning to issue bonds worth $500 million in the next three to four weeks. These bonds will be in foreign currency but for the domestic market.
Wale Edun, the Minister of Finance, spoke about this during a press briefing in Abuja called “Economic Recovery and Growth: Progress and Prospects 2024“.
He said: “We have an open exchange rate system. It’s legal, so we’re issuing a dollar-denominated security. We are not relying on the Western financial systems for this. Instead, we are using our own Nigerian financial system, including the Securities and Exchange Commission (SEC), banks, and investment bankers. The first $500 million will be for Nigerians abroad or anyone supporting President Bola Tinubu’s economic reforms.”
“This issue is a challenge to the best in our financial markets. It will open in the next three to four weeks.”
No Immediate Plans for Eurobonds
Addressing Eurobonds, Edun clarified that the government is not considering this option just yet. They will decide based on the success of the domestic foreign currency bonds.
He said: “Right now, there’s no plan to go to the international markets for Eurobonds, depending on how successful this issue is. We have the option, as the markets are open to us. But we prefer to encourage Nigerians to invest their money back home and be part of Nigeria’s reform success story. We are moving in the right direction and have made a positive turn.”
What you should know
- The Minister of Finance, Wale Edun, announced the plan to offer foreign exchange bonds to Nigerians living both in the country and abroad.
- The delay in issuing the bonds is because the government wants to build confidence in its financial plans and earn the trust of citizens who may be doubtful about government policies.