The federal government has said it intends to issue $500 million in bonds denominated in foreign currencies in three to four weeks’ time.
This was disclosed by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun during a quarterly press briefing themed ‘Economic Recovery and Growth: Progress and Prospects 2024,’ in Abuja, according to Nairametrics.
He said, “We have an open exchange rate system, it’s not illegal and so we have the issuance of a dollar-denominated security, not depending on the financial architecture of the Western world, not depending on the kind of architecture that you use to raise Eurobonds.
“We’re using the Nigerian financial system, the Securities and Exchange Commission (SEC), the banking system, 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 maximum.”
Regarding the possibility of issuing Eurobonds, Edun made it clear that, pending the outcome of the domestic bonds denominated in foreign currencies, the government does not currently have any plans to follow this path.
He 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. It is the markets are open to us. Our ratings and our performance merit.
“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 that is where the economy is headed.
“Although these are very, very early stages we are in the right direction. We have turned the corner.”
It was earlier reported the federal government intends to start issuing domestic bonds dominated in foreign currencies in the second quarter of this year.
The Minister of Finance revealed the federal government’s plan to sell foreign exchange bonds to Nigerians both at home and abroad.
However, Edun clarified that the government’s intention to build confidence in its economic policy and win over those who are doubtful of government policies was the reason behind the delay in issuing the bonds.
