Economy
THE recently issued 500 million dollars Federal Government (FGN) bond has recorded a subscription of 900 million dollars, indicating an oversubscription to the tune of 400 million dollars.
This is according to a statement by Mr Mohammed Manga, Director, Information and Public Relations, Federal Ministry of Finance and Economic Planning.
Manga said that in a groundbreaking achievement, Nigeria had successfully launched its first domestic dollar-denominated bond, shattering records and signalling a new era of financial innovation and economic growth.
“With over 900 million dollars raised, this milestone marks a significant turning point in the country’s financial strategy.
“It bolsters its economic resilience and cements its position as a leader in Africa’s financial markets.
“It also signals a new chapter in the country’s financial strategy, aimed at boosting economic resilience and fostering long-term growth,” he said.
According to him, led by the Africa Finance Corporation (AFC), the initiative garnered significant interest from both local and international investors.
He said that it demonstrated confidence in President Bola Tinubu’s economic policies and development plans.
“The success of this bond sets a new precedent for other African nations, highlighting the potential of Africa’s financial markets on the global stage,” he said.
Meanwhile, the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, commended the outcome.
“I am particularly pleased that as Chair of the African Caucus, we have launched an initiative that not only strengthens Nigeria’s economic resilience but also expands the horizon for capital markets of African economies,” he said.
Edun said the overwhelming response from investors reflected the growing interest in Nigeria’s economic opportunities and the broader investment potential of Africa.
“With this bond issuance, Nigeria is positioning itself as a leader in financial innovation, driving both national and regional growth through strategic economic measures.
“The funds raised from this bond will be directed toward critical infrastructure projects and development programmes, further strengthening key sectors of Nigeria’s economy.
“As Nigeria celebrates this groundbreaking achievement, it is clear that the country is poised for a brighter economic future, especially with the successful launch of its first domestic dollar-denominated bond,” he said.
The minister said the country had not only bolstered its economic resilience but also paved the way for other African nations to follow suit.
He said the overwhelming response from investors was a testament to the growing confidence in Tinubu’s economic policies and development plans.
“As the funds raised from this bond are directed toward critical infrastructure projects and development programmes, Nigerians can expect tangible improvements in their standard of living and a stronger economy for generations to come.
“This milestone marks a new era of financial innovation and economic growth, solidifying Nigeria’s position as a leader in Africa’s financial markets and a beacon of hope for the continent’s economic future,” he said.
The News Agency of Nigeria (NAN) recalls that the Federal Government, through the Debt Management Office, inaugurated the 500 million dollars local bond in Lagos on Aug. 15.
At the event, Edun had said that dollar funding was critical for the exchange rate to stabilise.
According to him, in terms of investments and stabilising the economy, it is important to have adequate foreign exchange.
He said that though there had been improvements in the flow of foreign exchange into the economy, the dollar denominated bond would further boost foreign exchange liquidity.
Edun said the transaction was aimed at improving the external reserves and supporting the exchange rates, which were critical elements of stabilising the economy and preparing it for investment and growth.(NAN)
Photo Caption: Minister of Finance and Coordinating Minister of the Economy, Wale Edun (middle) at the inauguration of the dollar-denominated FGN bond.
11th September, 2024.
C.E.
Tags: federal government
