Nigeria plans roadshow to test Eurobond market

… Seeks financial help from W. Bank and ADB

Nigeria is to mount a roadshow in the next two months as the government proceeds with seeking to borrow as much as $4.5bn from international investors and multilateral lenders, including the World Bank to cover a yawning gap in the budget.

Africa’s largest economy plans to issue new sovereign bonds in the first quarter, and has also applied to the World Bank and African development bank for financial support, Finance Minister Kemi Adeosun told the Financial Times.

“We are looking to rest the Eurobond market”, Adeosun said. “We think there is appetite. We are finalizing plans for a non deal roadshow in Q1.”

Adeosun, a London-born former investment banker was appointed finance minister in November following last year’s elections won by General Muhammadu Buhari, a former military dictator.

Nigeria’s finances have come under acute pressure as oil prices collapse, swelling the budget deficit to N1.8trn, driving down the naira and leading the government to impose a number of measures designed to defend the slumping currency, including capital controls.

The measures have led to unprecedented headwinds for businesses in the country especially manufacturers hit by acute shortage of raw materials and other inputs.

Last year, Nigeria was ejected from the influential indices of emerging market bonds by JP Morgan and Barclays, which said the country’s problems, had made investment transactions problematic for foreign investors.

The crisis facing businesses is now directly threatening the huge ambition of the government to expand tax revenues in 2016 following fears of factory shut down and job losses.