In a groundbreaking move, the Federal Government of Nigeria has raised over $900 million from its first-ever Domestic Federal Government of Nigeria (FGN) US Dollar Bond issuance, marking a significant milestone in the country’s economic development.
The Debt Management Office (DMO) hailed this achievement as pivotal for Nigeria’s financial growth. The bond, which was issued under the Domestic FGN US Dollar Bond Programme established by Presidential Executive Order No. 16 of 2023, saw an exceptional 180% subscription rate. Priced at par with a 9.75% coupon over five years, this inaugural bond issuance has demonstrated strong investor confidence in Nigeria’s economic stability.
Finance Minister and Coordinating Minister of the Economy, Mr. Wale Edun, highlighted that the bond attracted a diverse range of investors, including Nigerians both domestically and in the diaspora, as well as qualified institutional investors. The bond will be listed on the Nigerian Exchange Limited and FMDQ Securities Exchange Limited, further positioning Nigeria as a significant player in deepening its capital markets and enhancing financial inclusion.
Edun emphasized that the proceeds from the bond will be allocated to critical sectors of the economy, in line with President Bola Ahmed Tinubu’s directives. He praised the successful issuance as evidence of the ongoing faith investors and Nigerians have in the country’s economic trajectory.
DMO Director General, Ms. Patience Oniha, expressed gratitude to the various parties involved in the transaction. She acknowledged the roles of Africa Finance Corporation as the Global Coordinator, United Capital Plc as Lead Issuing House/Coordinator, and other financial and legal advisers who contributed to the bond’s success.
Oniha commended the bond’s over 180% subscription compared to the $500 million offered, which she said reflects the growing sophistication of Nigeria’s domestic fixed income securities market. She reiterated the Federal Government’s commitment to working with investors and stakeholders to drive economic growth and development in the country.