In June 2024, Nigeria is looking to raise up to $30 billion through its first-ever issuance of bonds denominated in foreign currency.
During a recent interview with BusinessDay, the Director-General of the Debt Management Office, Patience Oniha, revealed this target.
The government agency stated that the issuance of sovereign foreign currency bonds is part of the efforts to increase forex inflows to stabilize the naira, which has been greatly affected by a shortage of dollars.
Oniha mentioned, “When we appoint the advisors, we can make a projection. However, the assumption is that many Nigerians, both individuals and institutions including banks and Nigerians living abroad, hold dollars in their domiciliary accounts.”
“Thus, this initiative aims to bring dollar liquidity into the system. By investing in the bonds, the Federal Government of Nigeria (FGN) will acquire the necessary dollar liquidity. The target investors include individual Nigerians, institutions, and Nigerians in the diaspora,” she added.
This development follows an announcement by the Minister of Finance and Coordinating Minister for the Economy, Wale Edun, regarding the launch of a debut forex bond in the second quarter of 2024. The bond will be a short to medium-term instrument.