Nigeria’s first domestic dollar bond adds N1.47 trillion to country’s total debt 

This is according to the latest domestic debt report from the Debt Management Office (DMO).

Naijaonpoint observed that the bond constitutes 2.12% of the total domestic debt stock, which stood at N69.22 trillion as of September 30, 2024.

The issuance of the domestic dollar bond marks a significant step in the Federal Government’s efforts to diversify funding sources and attract foreign investments. Unlike naira-denominated instruments, this bond allows investors to gain exposure to Nigeria’s economy without the currency risk posed by naira fluctuations.

Domestic debt recorded mixed performance, declining by 5.34% in dollar terms from $48.45 billion in June to $45.87 billion in September. In naira terms, however, domestic debt increased by 3.10%, from N71.22 trillion to N73.43 trillion.

Naijaonpoint earlier reported that Nigeria successfully launched its first-ever domestic dollar-denominated bond, seeing over $900 million in subscriptions.

According to a statement from the AFC, investors for this bond issuance ranged from local Nigerians and non-Nigerians residing in the country to Nigerians in the Diaspora and major institutional investors.

In a separate statement, the Ministry of Finance hailed the bond issuance as a landmark achievement for Nigeria, positioning the country as a leader in financial innovation in Africa. The Minister of Finance, Wale Edun, emphasized the importance of this milestone for the country’s financial strategy.

The funds raised from this bond issuance are set to be channelled into critical infrastructure projects and development programs that will bolster Nigeria’s economic growth.