Nigeria is gearing up to issue Eurobonds for the first time since 2022, with the country enlisting the expertise of investment banks such as Citibank NA, JPMorgan Chase & Co., and Goldman Sachs for advisory services.
According to a recent Bloomberg report, the exact size of the Eurobond issuance, expected to occur before June, has not been determined yet.
Sources who spoke to the publication suggest that the Nigerian government is eyeing up to $1 billion in external borrowing this year to meet its spending obligations.
In addition to the aforementioned banks, Nigeria has also hired Standard Chartered Bank and Lagos-based Chapel Hill Denham as advisers.
On January 1, President Bola Ahmed Tinubu approved the N28.7 trillion budget for the 2024 fiscal year, with a deficit of N9.8 trillion, which will be funded through borrowings from local and international sources, as well as multilateral lenders.
Tinubu secured Senate approval on December 30, 2023, to borrow $7.8 billion and €100 million as part of the federal government’s borrowing plan spanning 2022 to 2024.
He said that these funds, once acquired, will be channeled towards addressing the economic realities and undertaking various projects across different sectors of the economy.
Since assuming office on May 29, 2023, President Tinubu has been implementing reforms aimed at attracting foreign investors back into the economy.
Last year, on June 14, the Central Bank of Nigeria (CBN) announced the unification of all segments of the foreign exchange (FX) market.
By Emmanuel Addeh with agency reports