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Nigeria to raise $1 billion in Eurobond market


Kemi AdeosunNigeria plans to raise $1 billion on the Eurobond market this year in a move designed to plug a budget deficit, said the country’s finance minister Friday.

Speaking at a press conference in the nation’s capital of Abuja, finance minister Kemi Adeosun said the government had earlier this month approved the plan to issue international debt for the first time since 2013.

Adeosun said that the bonds are expected to go on sale in December, with the proceeds channelled into capital projects.

“We are about to appoint our advisers. We are raising one billion dollars,” Adeosun said.

“I want to re-emphasise that we have a strategic plan that will take us out of the recession that we find ourselves in. We want to make sure that this recession is the shortest possible.”

Nigerian President Muhammadu Buhari announced a record 6.1-trillion-naira ($19.4-billion) spending plan for this year’s federal budget to try to stimulate growth.

The government will be seeking loans from the World Bank, the African Development Bank, China Exim Bank and the Japan International Cooperation Agency.

“These concessional loans will go to the strategic sectors of the economy,” Adeosun said earlier in September, citing the power and agricultural sectors as a key areas of focus.

Nigeria is in a recession, suffering from double-digit inflation and a massive drop in foreign investment as it struggles to undo the effects of a rigid foreign-exchange regime that led to a shortage of dollars and drained reserves.

The West African country’s economy is dependent on oil revenues, which have been hit by a plunge in the global price of crude and ongoing rebel attacks on infrastructure in the oil-producing southern region.

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  • Basil Ogbanufe

    There is no way borrowing can get us out of recession. Rather it will lead to a depression. Was it not borrowing that got us to this recession? This continued borrowing does not make sense but is proof of irresponsibility on the part of government. Instead of borrowing NNPC, Eleme petrochemical company, Kaduna refinery, Port-Harcourt refinery, Warri refinery, Ajaokuta steel, NTA, Radio Nigeria and similar government enterprises should be sold (privatized) to Nigerians through the NSE (Nigeria Stock Exchange) by way of IPO (Initial Public Offer).

    Through these sales (privatization by way of IPO) the amounts of money sought through borrowing will be realized immediately. On the long term government will realise revenues from taxes (direct and indirect). These enterprises will operate efficiently – transparently, accountably and most importantly, productively. The unemployment rate in the country will drop as employment (direct and indirect) will increase which is an excellent solution for the surge in militancy and terrorism in the country. This also will lead to diversification of the economy not only to agriculture but to areas like mining, manufacturing, research and development and services. Thus leading the country towards self-sufficiency.

    The results of borrowing are directly opposite to the results of privatization through the NSE by way of IPO. Self-sufficiency is the goal of development and progress and outright privatization and liberalization of the economy through the NSE by way of IPO. Please stop these borrowings.

  • Emeka

    Even when they want to borrow, all we hear is they plan to, they plan to and there is no action. Compare it with US seeks to. This is action.