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Federal Government To Issue Eurobond For Fresh Borrowing
Federal Government To Issue Eurobond For Fresh Borrowing....KINDLY READ THE FULL STORY HERE▶
The Federal Government of Nigeria has announced its plans to return to the international bond market by issuing a Eurobond, marking its first foray since March 2022. Engaging prominent global investment banks like Citibank NA, JPMorgan Chase & Co, and Goldman Sachs Group Inc., along with others, the government aims to leverage this initiative to address its significant budget deficit…….CONTINUE READING
This move comes as part of a broader strategy outlined in President Bola Tinubu’s N28.8 trillion spending plan for 2024, which projects a fiscal shortfall of N9.8 trillion, equivalent to 3.8 percent of the GDP. To manage this deficit, Nigeria is eyeing international loans of up to $1 billion throughout the year, with the Eurobond issuance expected before June.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, highlighted the potential for lower interest rates and ongoing economic reforms as driving factors behind the decision to issue Eurobonds. Since assuming office, President Tinubu has implemented policies aimed at attracting foreign investment and revitalizing the economy, including currency devaluations and the removal of fuel subsidies.
In addition to the Eurobond issuance, the Federal Government plans to borrow N450 billion through its third FGN bond auction of 2024, a significant reduction from previous targets. The auction, featuring a mix of new and existing bonds, is part of efforts to finance the 2024 budget deficit and steer the country towards economic stability.
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2.2 Million Candidates Sit for 2026 UTME Nationwide.
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