(Ecofin Agency) - In 2017, Nigeria raised US$300 million with its diaspora bonds, which offers the government alternative funding means.
Nigeria is currently considering the issuance of new disposal bonds, Bloomberg reports citing Patience Oniha, Director-General of the country’s Debt Management Office (DMO).
The exact amount the country intends to raise via that mechanism is not revealed yet but the operation aims to address the financial pressures facing the country, the government official reveals. It will help finance the budget deficit expected to rise to US$17 billion this year due to the impact of the Russia-Ukraine conflict on commodity prices. Also, government spending has risen significantly to withstand the Covid-19 crisis.
“We are doing both an analysis of recent research report on diaspora remittances and reviewing offshore regulations for changes that may be supportive of offering products to retail investors,” Ms. Oniha indicated.
If organized, the intended diaspora bond will be the second-ever organized by the country. In 2017, it raised close to US$300 million in a successful operation, which shows investors’ attraction to such bonds issued for the first time in Africa by Ethiopia.
Moutiou Adjibi Nourou