By Daniel Peters
The Federal Government of Nigeria has launched a $500 million domestic bond, marking a significant milestone in the country’s economic reform and development journey.
The Minister of Finance and Coordinating Economy, Mr. Wale Edun, while unveiling the Series I USD500 Million Domestic FGN US Dollar Bond on Thursday in Lagos, stated that the launch was a bold step towards economic transformation
poised to attract both local and international investors.
“This historic initiative is aimed at raising a minimum of $500 million from both local and international investors, marking a significant step in Nigeria’s ongoing economic reform and development efforts”, he stated.
Mr Edun stated further that the bond issuance, which is set to leverage the Nigerian financial system, including the Securities and Exchange Commission, the banking system, and investment bankers, represents a critical effort to attract foreign currency held by Nigerians abroad, as well as other international investors who believe in the macroeconomic reform initiatives spearheaded by President Bola Ahmed Tinubu.
In his presentation at the event, the Minister emphasized that the financial market thrives on creativity and innovation and that it is essential to encourage investors to participate in this strategic opportunity.
While highlighting the positive outcomes already being seen from the current economic policies, Mr Edun
noted that government revenue and expenditure have been significantly revamped, and the trade balance is improving.
He informed of the government’s efforts in revitalizing the agricultural sector, which is taking on a new and promising direction.
The Minister explained that the present
administration’s successful interventions to reduce inflation and poverty, such as the removal of levies on food imports and the direct transfer of funds to the most vulnerable citizens.
He stressed that this new bond initiative is another crucial step in bolstering Nigeria’s economy.
Mr Edun underscored the importance of dollar funding, particularly in stabilizing the exchange rate, which he said is vital for the country’s economic stability.
Addressing the challenges faced by African nations in the international capital markets, the Minister explained that the rating systems often do not favour the continent. In response, he assured that Nigeria aims to take the lead.
With this historic bond launch, the Minister expressed optimism that Nigeria is poised to become a continental financial hub, where other African nations can raise capital and drive economic growth.
Thus, the Honourable Minister’s visionary leadership and commitment to innovation have set the stage for a brighter economic future, especially now that Nigeria has taken the lead in harnessing diaspora savings and driving macroeconomic reforms, the country is well on its way to becoming a continental financial hub, driving growth and prosperity for generations to come.
FG Unveils Regulations To Boost Food Security & Reduce Inflation
In a bid to tackle food price inflation and stimulate domestic agricultural growth, the Federal Government has introduced the Regulation for the Implementation of the Customs, Excise Tariff, Etc. Variation Order 2024.
Signed by the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, noted that this regulation provides a framework for the implementation of the Customs, Excise Tariffs etc. Order 2024, aimed at controlling and reducing food price inflation by waiving levies, duties, value-added taxes, and tariffs payable on the importation of basic food items.
With the introduction of these regulations, Nigeria is poised to witness a significant reduction in food price inflation, increased investment in the agricultural sector, and enhanced food security.
Mr Edun reiterated the Federal Government’s commitment to creating an enabling environment for economic growth, and this regulation is a testament to that commitment.
“We urge all eligible companies to take advantage of this opportunity to contribute to Nigeria’s food security and economic development”, the Minister stated.
