The federal government plans to begin the issuance of domestic bonds denominated in foreign currency starting from the second quarter of this year according to Minister of Finance Wale Edun reported by Reuters.
Mr. Wale Edun announced the government’s plan to market foreign exchange bonds to Nigerians both at home and in the diaspora. during a meeting with business executives in Lagos on Wednesday,
The Minister explained that the delay in issuing the bonds was due to the government’s desire to establish confidence in its fiscal strategy and earn the trust of citizens who are sceptical of government policies.
Furthermore, the Minister lamented the government’s huge debt service burden noting that it is what keeps him awake at night. He said, “When they say what keeps you awake at night, I will say paying the debt service (cost)”
Since assumption into office, the administration of President Bola Tinubu has sought to raise foreign exchange to stabilise the naira and fund its massive budget. For 2024, Nigeria has a budget deficit of N9.18 trillion- a drop from the over N13 trillion recorded in 2023.
In October last year, Finance Minister Wale Edun revealed that President Bola Tinubu had signed executive orders facilitating the domestic release of financial instruments in foreign currency with the aim of bringing cash outside the financial system into banks.