SAHARA REPORTERS
In a bid to strengthen the Naira, Nigerian government plans to sell $500 million of dollar-denominated securities in the domestic market.
This move is expected to attract foreign currency held by its citizens living abroad, according to statements credited to Finance Minister Wale Edun.
Bloomberg reports that the offering will take place within the next four weeks.
The government is also not considering a eurobond offering, focusing on the dollar bond instead.
“Eurobond is one of the options that we have, the markets are open to us, our ratings and our performance merit it,” Edun said. “But we prefer in the first instance to challenge Nigerians to come home with their money and be part of the Nigerian reform success story.”
Nigerian President Bola Tinubu ushered a series of economic reforms after taking power in May 2023, including liberalising the nation’s exchange rate.
This move comes amid free fall of naira, whose value has significantly depreciated since the reform.
“We need to attract the savings of Nigerians that keep their money abroad,” he said.
The government noted that its reforms are starting to bear fruit, citing “the more stable exchange rate, its narrowing budget deficit and a positive trade balance.”
However, experts and data may contend with the government on claims of a more stable foreign exchange as Naira continues to depreciate in the open market.
The budget shortfall is currently estimated at 4.4% of gross domestic product, compared with 6.1% in 2023, Edun said.
