Nigeria’s Fidelity Bank may issue local debt to boost lending

Nigeria’s Fidelity Bank is considering issuing a commercial paper to boost lending depending on the yield and pricing it can fetch, a senior executive said on Wednesday.

Analysts expect the central bank this year to adopt a more dovish stance on interest rates as inflation falls, and see a cut in the coming months. Also, the government is shifting towards foreign borrowing to cut yields at home.

Fidelity Chief Operations and Information Officer Gbolahan Joshua, said the mid-tier lender could look to the local funding market this year after it raised a $400 million Eurobond in October to refinance existing debt and boost lending.