In three to four weeks, the federal government intends to issue $500 million in bonds denominated in foreign currencies.
The Minister of Finance and Coordination of the Economy is Wale Edun. At a quarterly news briefing in Abuja with the theme “Economic Recovery and Growth: Progress and Prospects 2024,” Edun made this statement.
“We have an open exchange rate system; it is not illegal,” he stated. “Therefore, we have the issuance of a dollar-denominated security, independent of the Western financial system and independent of the architecture used to raise Eurobonds.”
“We’re using the Nigerian financial system, the Securities and Exchange Commission (SEC), the banking system, and the investment bankers to issue $500 million in the first instance that will be available and will attract foreign currency held by Nigerians abroad and anybody else who buys into the macroeconomic reform efforts of President Bola Tinubu.
“That issue is a challenge to the best and the brightest in the financial markets. It is due to open in the next three to four weeks.”
No Future Plans for Eurobonds
Addressing the potential for raising Eurobonds, Edun clarified that the government has no current plans to pursue this route, contingent on the success of the domestic foreign currency-denominated bonds.
The finance minister said: “Right now, depending on the success of that issue, there is no talk of looking to go to the international markets to raise the euro bond.
“It is one of the options that we have. The markets are open to us. Our ratings and our performance merit it.
“The market is open to us but we prefer, in the first instance, to challenge Nigerians to come home with their money and be part of the Nigerian reform success story that we believe is where the economy is headed.
“Although these are very, very early stages, we are in the right direction. We have turned the corner.”
