Nigeria Aims For $30 Billion From Debut Forex Bond

Nigeria Aims For $30 Billion From Debut Forex Bond

Nigeria is set to launch its inaugural foreign currency-denominated bond issuance in June 2024, with a target of raising up to $30 billion. Patience Oniha, the Director-General of the Debt Management Office, revealed this in a recent interview with BusinessDay…..READ ALSO Over 2,500 Nigerians Killed, 2,164 Abducted In Three Months – Report

The sovereign domestic foreign currency issuance aims to attract more forex inflows, thereby stabilizing the naira, which has faced challenges due to dollar shortages.

Oniha emphasized that the issuance aims to tap into the significant holdings of dollars in domiciliary accounts held by both individuals and institutions, including banks and Nigerians in the diaspora. By bringing dollar liquidity into the system, the Nigerian government seeks to address the country’s need for dollar liquidity.

The target investors for the forex bond include individual Nigerians, institutions, and Nigerians in the diaspora interested in investing.

The move aligns with the recent announcement by the Minister of Finance and Coordinating Minister for the Economy, Wale Edun, regarding plans for a debut forex bond in the second quarter of 2024. This bond is expected to be a short to medium-term instrument.

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