Presidency Commends Approval Of $300m Diaspora Bond

The Presidency has described the approval of the $300 million Diaspora Bond supported by the House of Representatives as a good development.

The House of Representatives last week approved a request by President Muhammadu Buhari for the increase of the Diaspora Bond from $100 million Euro Bond to $300 million Euro Bond, which will be raised from the international market.

President Buhari had on September 29, 2015 written both chambers of the National Assembly, requesting the increase of Diaspora Bond as captured under the Federal Government’s External Borrowing Plan 2016 – 2018.

The Senior Special Assistant to the President on Diaspora and Foreign Relations, Honourable Abike Dabiri-Erewa, noted that the bonds will give opportunities to patriots to actively engage in the welfare of their beloved country Nigeria. She encouraged all Nigerians in the diaspora to take advantage of the diaspora bond.

According to her, at least with 5-10 year maturity and annual dividends between 5-8% way more than bank deposit and certificate of deposit which is within 2%, interest rates are certainly a plus for patriotic investors.

The Director General of the Debt Management Office (DMO), Dr Abraham Nwankwo, said the bonds are tax exempted implying bigger income for the investor, the bonds provide an alternative investment to equities, real estate and bank deposits.

He noted that bonds can also be used as collateral for borrowing from banks and discounts houses and bonds can be sold either through any of the 21 PDMMs licensed by the DMO or on the floor of NSE.