Nigeria’s groundbreaking issuance of its first-ever foreign-currency domestic bond has achieved significant success, attracting a substantial $900 million in subscriptions. This milestone reflects strong investor confidence in Nigeria’s economic prospects and stability.
Finance Minister and Coordinating Minister of the Economy, Wale Edun, disclosed the results of this historic bond issuance on Tuesday. He emphasized that the oversubscription highlights the growing faith investors have in Nigeria’s financial and economic future.
“The successful issuance of this inaugural domestic FGN US Dollar Bond is a testament to the ongoing investor confidence in Nigeria’s economy,” Edun stated. He noted that the bond issuance represents a major step towards fostering economic growth and enhancing financial inclusion.
This bond, the first tranche of a $2 billion program, features a $500 million domestic FGN US Dollar Bond with a five-year maturity and a 9.75% coupon rate. The program is registered with the Securities and Exchange Commission (SEC), and its design allows for the absorption of oversubscriptions up to the full $2 billion limit.
The bond has drawn interest from a diverse group of investors, including both domestic and international entities. The funds raised will be directed towards critical economic sectors as approved by President Bola Ahmed Tinubu.
Patience Oniha, Director-General of the Debt Management Office, lauded the bond’s success as a landmark event for Nigeria’s economic development. She highlighted that the $900 million raised underscores the increasing sophistication of Nigeria’s domestic fixed-income market.
Oniha also acknowledged the efforts of all parties involved in the bond issuance, praising their expertise and contribution to the transaction’s success.
The issuance marks a strategic move by the government to diversify its funding sources and address economic challenges while reinforcing investor trust in the nation’s economic trajectory.
