Nigeria’s naira surged by 4.8% against the US dollar, marking its largest gain in nearly two months after the country’s first-ever domestic dollar bond sale. This increase, the highest since July 22, saw the naira close at 1,558 per dollar on Wednesday, its strongest performance since August 21, according to Bloomberg.
The boost in the currency’s value came after Nigeria’s debut foreign-currency domestic bond received $900 million in subscriptions. The bond, a $500 million Federal Government of Nigeria (FGN) US Dollar Bond with a five-year maturity and a 9.75% coupon, is part of a larger $2 billion bond program approved by the Securities and Exchange Commission.
Wale Edun, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, explained that the bond structure allows for oversubscriptions, up to the full $2 billion program limit. The funds raised will be directed towards critical sectors of the economy, in line with President Bola Ahmed Tinubu’s approval.
The bond attracted interest from a diverse range of investors, including local and diaspora Nigerians, alongside institutional players. Edun described the bond’s success as a significant step toward enhancing financial inclusion and driving economic growth.
The successful bond issuance has positively impacted investor confidence, playing a crucial role in the recent appreciation of the naira.
