According to Olawale Edun, Nigeria’s Finance Minister, the African country intends to issue up to USD 500 million in diaspora bonds as part of its plan to grow and stabilise its economy.
In addition to attracting investment from Nigerians living abroad and those with savings held overseas, the domestic dollar-denominated bond, scheduled for issuance in the third quarter, aims to show the economy’s strength and resilience in the face of ongoing economic reforms.
Edun said in a statement that Nigeria’s decision to issue the securities follows President Bola Tinubu’s ongoing reforms, which have seen notable advancements including a projected budget deficit of 4% in 2024.
Investors have applauded Bola Tinubu’s historic reforms since he took office a little more than a year ago, which include cutting expensive electricity and gas subsidies and devaluing the naira twice in a single year.
According to Edun, the reforms, of which the issuing of securities is a crucial component, represent a determined effort on the part of the government to promote inclusive growth, which has the potential to pull millions out of poverty and draw in both domestic and foreign investment.
Meanwhile, cargoes of crude oil from both Nigeria and the United States are resold at the Dangote Petroleum Refinery, the biggest refinery in Nigeria.
According to Reuters, the plant’s technical issues are the cause of this unusual refinery action. With full operation expected in January 2024, the refinery will be the biggest in both Africa and Europe. Its goal is to change Nigeria’s fuel importer status to fuel exporter status.
However, it appears from recent events that the refinery is having problems with some of its operational aspects, particularly with its crude distillation unit (CDU). The CDU is operational, according to a Dangote executive, despite these assertions.
Rare resale items include US WTI Midland crude as well as Nigerian Escravos and Forcados grades.