By Aaior K. Comfort

Nigeria’s debut foreign-currency domestic bond has attracted $900 million in subscriptions, marking a significant milestone in the country’s financial landscape. Finance Minister Wale Edun announced the successful issuance on Tuesday, highlighting the strong investor interest as a testament to Nigeria’s economic stability and growth potential.

The inaugural FGN US Dollar Bond, valued at $500 million with a five-year maturity and a 9.75% coupon, is the first tranche of a $2 billion bond program approved by the Securities and Exchange Commission. This bond aims to diversify Nigeria’s funding sources and support economic growth and financial inclusion.

Edun emphasized that the bond’s oversubscription reflects investor confidence in Nigeria’s economy, demonstrating the government’s commitment to addressing economic challenges and expanding funding avenues. The bond attracted a diverse group of investors, both local and international, including institutional investors.

Director-General of the Debt Management Office, Patience Oniha, hailed the bond’s success as a pivotal achievement for Nigeria’s economic development. She noted that the $900 million raised from a broad range of investors highlights the increasing sophistication of Nigeria’s domestic fixed-income market.

The funds from this bond will be directed towards critical economic sectors, as approved by President Bola Ahmed Tinubu. The success of this bond issuance underscores Nigeria’s ongoing efforts to enhance its financial infrastructure and attract global investment.