Nigeria recently achieved a significant milestone by raising $900 million in its first domestic auction of dollar-denominated bonds. According to the Debt Management Office (DMO), this marks a pivotal moment in the country’s economic development.

The Minister of Finance and Coordinating Minister of the Economy announced that the Bond issuance was over-subscribed by 180%, signaling strong investor confidence in Nigeria’s economic stability and growth potential. The five-year bond, which carries an annual coupon rate of 9.75%, was introduced following Presidential Executive Order No. 16 of 2023. This Executive Order focuses on the issuance of foreign currency-denominated financial instruments in the domestic market and related matters.

The primary objective of this Bond issuance is to strengthen the Nigerian economy and promote financial inclusion. Proceeds from the Bond will be allocated to critical sectors of the economy, as approved by the President.

The minister emphasized that the successful launch of the Bond is a testament to the government’s commitment to diversifying its funding sources and driving economic growth, despite the current challenges facing the nation. The Bond attracted a wide array of investors, including qualified institutional investors, Nigerian residents, Nigerians in the diaspora, and non-Nigerians residing in the country.

The Bond is set to be listed on the Nigerian Exchange Limited and FMDQ Securities Exchange Limited, making it more accessible and contributing to the deepening of Nigeria’s capital markets. “The 180% subscription and wide participation reflect confidence in our economy,” said the Minister. He also highlighted that this Bond issuance signifies better days ahead as Nigeria continues to diversify its funding sources and enhance its capital markets.