In a significant move aimed at bolstering the economy and promoting financial inclusion, the Federal Government of Nigeria has successfully raised over $900 million through its first-ever Domestic Federal Government of Nigeria (FGN) US Dollar Bond issuance. The Debt Management Office (DMO) hailed this achievement as a crucial step in the nation’s economic advancement.

In a statement, the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, revealed that the bond issuance witnessed an impressive subscription rate of over 180%, a clear indication of investors’ confidence in Nigeria’s economic stability and growth potential. Priced at par with a coupon rate of 9.75% over five years, the bond marks the first under the Domestic FGN US Dollar Bond Programme, established through Presidential Executive Order No. 16 of 2023.

The landmark bond issuance attracted a diverse group of investors, including Nigerians and non-Nigerians residing in the country, members of the Nigerian diaspora, as well as qualified institutional investors. The bond will be listed on both the Nigerian Exchange Limited and FMDQ Securities Exchange Limited, further positioning Nigeria as a key player in the expansion of its capital markets and the promotion of financial inclusion.

Mr Edun explained that the bond proceeds would be channelled towards critical sectors of the economy, as approved by President Bola Ahmed Tinubu. He emphasised that the success of this issuance underscores the government’s commitment to diversifying its funding sources and fostering economic growth in the face of ongoing challenges.

“The issuance of this inaugural Domestic FGN US Dollar Bond demonstrates that both investors and Nigerians continue to have faith in the country’s economy,” Mr Edun said, expressing confidence in Nigeria’s economic trajectory.

The Director General of the DMO, Ms Patience Oniha, extended her gratitude to all stakeholders involved in the transaction, particularly acknowledging the contributions of Africa Finance Corporation as Global Coordinator, United Capital Plc as Lead Issuing House/Coordinator, and Meristem Capital Limited, Stanbic IBTC Capital Limited, and Vetiva Advisory Services Limited as Issuing Houses. She also recognised the legal partners, Olaniwun Ajayi LP and G. Elias, and financial advisers, Constant Capital Markets and Securities Limited, and Iron Global Markets Limited, for their pivotal roles in the bond’s execution.

“This transaction was made possible through the expertise and guidance of our advisers. We also deeply appreciate the continued support from the Nigerian public and our institutional partners, whose contributions were instrumental in the successful completion of this historic issuance,” Ms Oniha remarked.

She further noted that the DMO was highly pleased with the outcome of the exercise, pointing out that the $900 million raised, which exceeded the initial offer of $500 million by over 180%, and the diverse pool of investors, were clear indications of the depth and growing sophistication of the domestic fixed income securities market.

The DMO reaffirmed the Federal Government’s commitment to working collaboratively with investors and stakeholders to drive economic growth and development in Nigeria.