The Federal Government is said to start issuing domestic foreign currency-denominated bonds from the second quarter (Q2) of 2024.
Wale Edun, minister of finance and coordinating minister of the economy said this on Wednesday during a meeting with business leaders in Lagos.
Edun said in October last year, President Bola Tinubu had signed executive orders to allow domestic issuance of instruments in foreign currency and also allow all cash outside the banking system to be brought into the banks.
He said the federal government would seek to sell forex bonds to Nigerians at home and abroad who, “because of lack of faith in the currency, have decided to try to hold and save in dollars”.
“All the funds in the diaspora, we are targeting them. There are all these funds that you have brought into your (local foreign currency) accounts, we are targeting them,” the minister said.
Edun also said the government had not “issued the bonds earlier because it sought to first build confidence in its fiscal policy and gain the trust of citizens who are skeptical of government policies”.
“When they say what keeps you awake at night, I will say paying the debt service (cost),” said
The N28.7 trillion budget for the 2024 fiscal year has a deficit of N9.8 trillion which will be financed by borrowings from local and international investors and multilateral lenders.
In March BusinessDay had reported that Nigeria hired investment banks including Citibank NA, JPMorgan Chase & Co., and Goldman Sach as advisors on its first eurobond issue since 2022.
However, two days later, the Debt Management Office (DMO) said it had not received approval for the appointment of transaction advisers and eurobond issuance.
