As the World Bank-IMF Spring Meetings winds up, the Federal Government of Nigeria has stated that it plans to float a Diaspora Bond to attract funds held abroad by Nigerians at home and in the Diaspora.
The Honourable Minister of Finance and Co-ordinating Minister of the Economy, Mr Wale Edun, disclosed this yesterday during his Wrap Up 2024 Spring Meetings’ media briefing held in Washington DC, United States of America.
He observed that remittances are certainly one of the ways the nation can increase the supply of foreign exchange and investment in the country.
The Minister informed that, “there are Nigerians abroad who are doing very well. Even Nigerians in Nigeria with funds abroad that can be counted as remittance and in order to increase the supply of foreign exchange into the economy, government is looking at attracting those funds through a Diaspora kind of instrument, a Diaspora Bond we think, that will be attractive enough for Nigerians abroad and for foreign holdings of foreign currencies and look to having a substantial issue later in the year”, he said.
As part of the efforts of the administration to increase foreign exchange inflows, Mr. Edun informed further that Nigeria has qualified for the processing of a $2.25 billion World Bank facility.
“Nigeria has qualified for the processing of a total package of World Bank $2.25 billion, well there is no free money, but it is close to a grant for 40 years, moratorium of 10 years and about 1 percent interest. So that is also part of the flow that you can count*, the Minister said
According to a statement signed by the Director of Information and Public Relations, Mohammed Manga FCIA, the minisyer explained that “there is a similar Budgetary Support, low-interest funding from the African Development Bank and clearly, there is also on-going discussions with Foreign Direct investors. Some of these things take longer than you expect, but there are relatively advanced discussions on major foreign direct investment inflows into the country, specific transactions with companies, institutions and authorities”,
The minister said that the Spring Meetings presented an opportunity to engage the international audience on a global stage. *We have had the opportunity of speaking to international investors, portfolio investors and those International Direct investors that will bring what I will describe as quality funding. The kind of funding that builds factories and creates jobs”, he stated.
