Business
DMO Ties Diaspora Bond To Specific Project
The Debt Management Office (DMO) has said that the proposed Diaspora bond to be issued by the Federal Government will be tied to specific projects to enhance the economy.
Dr Abraham Nwankwo, DMO Director-General made this known in an interview with our correspondent on Sunday in Abuja.
“ On the issue of Diaspora bond, as you know, the Coordinating Minister for the Economy, Dr Ngozi Okonjo-Iweala, has some months ago, made a public statement that Nigeria is going to prospect, issuing a Diaspora bond.
“And she has given the DMO a mandate to work with this and she has set up a technical committee to make progress on this part and progress is being made in finalising the framework and the objective of issuing a Diaspora is still on focus.
“The only point I can make at this date is that whatever Diaspora bonds will be issued, will be tied to specific projects.’’
Nwankwo said the issuance of the Euro bond was to give Nigeria visibility in the international finance market.
He added that the specific projects to which proceeds of the bond would be deployed would be made public.
“Those who are investing in the bond will know that the proceeds are billed to develop specific projects that have been designed and that will be projects that are part of national priority either in terms of real sector or in terms of infrastructure.’’
Nwankwo noted that by the time the framework was ready, the coordinating minister would tell the public the next step forward.
He said that most global investors had positive outlook of the Nigerian economy and also expressed strong confidence in the way the economy was being managed.
This, he stressed, had contributed to the over-subscription of the bond in the market.
“The international community, the discerning investors, the global fund managers are keen on being part of the process of transformation in the economy.
“And that’s why they are keen to buy the Nigerian bond in the international capital market; that’s why they are making strong demands for additional bond issues in the international capital market.’’
He noted that the bond had been trading in the market at 5.7 per cent and 5.8 per cent premium per annum, lower than 6.75 per cent coupon at which it was issued.
He said that the price had been lower and had generated a great demand for the bond.
Nwankwo also noted that even with the challenge of insecurity in the country, the euro bond had traded positively at the international market.
“Even with the security challenges the international community appreciates the strategy government is employing to respond.
“What is important to them is what is being done to address the problem; they appreciate that government is doing something and using a package of measures to deal with this effectively.’’
We recalled that the 500 million dollars Euro bond was issued in January 2011 and was oversubscribed by more than 200 per cent.
The investor distribution was widespread. Euro, Asia, North and South America participated effectively and global fund managers were also represented in the distribution.
“Payment of tuition fees for undergraduate/postgraduate studies shall be subject to a maximum limit of $25,000.00 per semester,” the Manual states.
The expansion of international card limits also reflects growing confidence among lenders that foreign exchange liquidity has improved enough to support retail dollar transactions.
Speaking recently at the BusinessDay 14th Annual CEO Forum in Lagos, CBN Olayemi Cardoso, governor of the CBN said buying and selling activities now increasingly determine outcomes in the foreign exchange market, unlike in the past when market participants relied heavily on routine Central Bank interventions.
According to Cardoso, Nigeria’s net foreign exchange reserves have risen from just over $3 billion at the start of the reform programme to more than $40 billion, while gross reserves have climbed to about $52 billion, providing stronger confidence for investors and enabling the Central Bank to reserve interventions for periods of market stress rather than day-to-day liquidity management.
The restoration and expansion of international naira card spending limits are increasingly being seen as one of the clearest signs that the benefits of the CBN’s foreign exchange reforms are beginning to reach households, students and businesses making legitimate cross-border payments.
The Secretary-General and Chief Executive Officer, WEC, Dr Angela Wilkinson, disclosed this in a statement, last Thursday.
“Nigeria’s participation comes at a pivotal time as the country seeks to expand energy access, strengthen energy security, accelerate gas development and mobilise the capital required for industrialisation and sustainable economic growth.
“WEC Nigeria will convene leaders from across the energy ecosystem, apply the WEC’s globally recognised Energy Trilemma framework to Nigeria’s unique context, and promote evidence-based dialogue, practical collaboration and informed policymaking.
“It will also ensure that Nigerian and broader African perspectives contribute meaningfully to global energy conversations,” she said.
Wilkinson expressed confidence that Nigeria would play a significant leadership role at the World Energy Congress scheduled for Riyadh in April 2027 and beyond.
The statement also quoted the Chairman of WEC Nigeria, Isa, as describing the country’s participation as an opportunity to deepen national and African leadership within the global energy community through practical solutions tailored to regional development priorities.
He said the platform would promote collaboration across sectors and attract sustainable investments into Nigeria’s energy sector.
The Chief Executive Officer of WEC Nigeria, Wunti, was quoted in the statement as saying that the council would connect leadership, evidence and investment to build a secure, affordable and sustainable energy system.
“This system will be capable of driving economic growth and shared prosperity.”
According to him, the platform will also connect Nigerian institutions and businesses with international knowledge, technology, partnerships and investment opportunities through the World Energy Council’s global network.
Recall that WEC, founded in 1923, is the world’s oldest independent and impartial community of energy leaders and practitioners, advancing informed, collaborative and practical action across the global energy system.