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US confirms Nigeria seeks Eurobond issuance

As Nigeria’s inflation levels soar, the country is casting a wide net for international funds.

Acting Nigerian President Yemi Osinbajo is going ahead with seeking approval from the country’s National Assemble,  to allow the country to issue a Eurobond debt instrument of $500 million.

The money would be used to fund the capital expenditure plan outlined in the 2016 budget.

At a plenary session of the National Assembly, Osinbajo said the bonds – which would be subject to market conditions — would be issued between February and March this year.

The country’s deficit of over N2,2 billion sees a proposal to borrow over N1, 8 billion.

Osinbajo said: “… based on the 2016 appropriation and applying the average exchange rate, there is headroom to access further international funds. Following the high oversubscription to the recent USD 1 billion Eurobond issuance, we wish to take advantage of favourable market conditions to issue a Eurobond debt instrument of USD 500 million to fund the implementation of the 2016 budget…”

Earlier this month, American President Donald Trump placed a much anticipated call to Nigerian President Muhammadu Buhari. According to Tiffany Jackson-Zunker, Deputy Director, Africa Regional Media Hub at the Whitehouse State Department, the heads of State discussed security, governance priorities and cooperation between the United States and Nigeria.

A statement on the White House’s website read: “President Trump underscored the importance the United States places on its relationship with Nigeria, and he expressed interest in working with President Buhari to expand the strong partnership. The leaders agreed to continue close coordination and cooperation in the fight against terrorism in Nigeria and worldwide.

LEX Africa Nigerian member Osayaba Giwa-Osagie, says “Taking into account the over subscription of the one Billion dollar Eurobond; the new Foreign Exchange polices released by the Central Bank of Nigeria recently and the determination of the Central Bank of Nigeria to make dollars easily available to consumers, taking into account the fact that Boko Haram insurgencies have been defeated almost completely ; the peaceful situation in the Niger Delta region of the country; the increase in the price of crude oil which is over  $50 USD compared to about $ 25 USD same time last year and the new Economic policies of the present administration as recently announced by the Vice President and Minister of Industry, Trade and Investment and the governments dogged fight against corruption, I am extremely optimistic that Nigeria will be out of its current recession within the next 12 months and will retain its position as the largest economy in Africa.”

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