Nigeria’s First Domestic Dollar Bond.

Nigeria successfully issued its first-ever domestic dollar-denominated bond, raising $900 million, which significantly overshot the initial target of $500 million. This bond, which has a five-year maturity and a 9.75% coupon, was oversubscribed by 180%, indicating strong investor confidence in Nigeria’s economy. The issuance was praised for diversifying Nigeria’s funding sources and avoiding the higher yields of international capital markets.

The proceeds from this bond are intended to be invested in critical sectors of the Nigerian economy, as approved by President Bola Tinubu, aiming to bolster economic growth and infrastructure development. This move has been highlighted as a step towards financial inclusion and deepening Nigeria’s domestic capital market, with the bond attracting a broad range of investors, including Nigerians both at home and abroad, as well as institutional investors.

This historic bond issuance not only underscores the growing sophistication of Nigeria’s domestic fixed-income market but also reflects a strategic approach to managing Nigeria’s foreign exchange reserves and addressing the persistent dollar scarcity within the country.