Nigeria moves to save the naira, issues first Eurobond after two years
Nigeria in moving to save the naira has hired investment banks including Citibank NA, JPMorgan Chase & Co., and Goldman Sachs, to seek advice on its first eurobond issue since 2022.
According to a Bloomberg report, the size of the eurobond offer, which is expected before June, is yet to be determined.
The federal government could raise as much as $1 billion in external borrowing this year to meet its spending needs, according to sources who spoke to the publication.
The report said Nigeria has also hired Standard Chartered Bank and Lagos-based Chapel Hill Denham as advisers.
On January 1, President Bola Tinubu signed the N28.7 trillion budget for 2024 fiscal year, with a deficit of N9.8 trillion — which will be financed by borrowings from local and international investors and multilateral lenders.
Tinubu also received approval from the senate on December 30, 2023, to borrow the sums of $7.8 billion and €100 million as part of the 2022-2024 borrowing plan of the federal government.
The president had sent a request to the national assembly to approve the sum, saying the funds, when obtained, would be used to assuage the economic realities and undertake many projects cutting across various sectors of the economy.
Meanwhile, since he took office on May 29, 2023, Tinubu has been seeking to attract foreign investors back into the economy through several reforms.
Last year, on June 14, the Central Bank of Nigeria (CBN) announced the unification of all segments of the foreign exchange (FX) market.
