According to an official release, the Federal Government of Nigeria (FGN) has disclosed plans to begin issuing domestic bonds denominated in foreign currencies in the second quarter of this year. Mr. Wale Edun, the Coordinating Minister for the Economy and Minister of Finance, provided the information to Reuters.
Edun reported in October 2023 that President Bola Tinubu had approved executive directives permitting the issuance of foreign currency instruments domestically and permitting the transfer of all monies outside the banking system into banks.
According to the news agency, he informed business executives in Lagos on Wednesday that the government would try to sell foreign exchange bonds to Nigerians living overseas who have “decided to try because of lack of faith in the currency.”
“All the funds in the diaspora, we are targeting them. There are all these funds that you have brought into your (local foreign currency) accounts, we are targeting them,” said Edun.
Edun said the government had not issued the bonds earlier because it sought to first build confidence in its fiscal policy and gain the trust of citizens who are sceptical of government policies.
Nigeria has struggled to raise revenue to fund its national budget largely due to a decline in oil output, which authorities blame on pipeline vandalism, crude theft and low investment. Naira Devaluation Deepens Economic Crisis in Nigeria
That has left the government relying on debt to plug the deficit, increasing the total government debt to $108 billion at the end of 2023. Nigeria spends around 78 per cent of its revenue to service debt and the government wants to reduce this to around 50 per cent.
