The Nigerian federal government has unveiled plans to launch $500 million in domestic bonds denominated in foreign currency within the next three to four weeks.

Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, disclosed this information during a quarterly press conference held in Abuja, titled ‘Economic Recovery and Growth: Progress and Prospects 2024’.

Edun stated, “Our exchange rate system is open and legal, enabling us to issue dollar-denominated securities. This does not rely on the financial frameworks established by the Western world or the methods typically used for Eurobonds.”

He emphasized that the bonds would be facilitated through Nigeria’s financial system, including the Securities and Exchange Commission (SEC), local banks, and investment bankers.

The initiative aims to attract foreign currency held by Nigerians overseas as well as other investors interested in supporting President Bola Tinubu’s macroeconomic reforms.

“This issuance presents a challenge to the top talents in financial markets. We expect it to open in the next three to four weeks at the latest,” Edun noted.

In regard to the possibility of issuing Eurobonds, Edun clarified that the government currently has no immediate plans to pursue this option, as it will assess the success of the domestic bonds first.

He remarked, “Depending on how well this bond issue performs, we are not considering entering international markets for Eurobonds at this time. It’s an option we could explore in the future, as the markets are accessible to us, and our ratings and performance warrant it.”

“The market is open to us, but initially, we prefer to encourage Nigerians to bring their funds back home and participate in the success of the economic reforms we are implementing. While we are at a very early stage, we are heading in the right direction and have turned a corner,” he concluded.