By Atoyebi Nike
President Bola Tinubu has formally requested the approval of the National Assembly for a plan to raise up to $2 billion through the domestic issuance of foreign currency-denominated bonds.
The proposal was conveyed in a letter read by Senate President Godswill Akpabio during plenary on Tuesday. Tinubu said the initiative is in accordance with Section 44(1) and (2) of the Fiscal Responsibility Act, 2007, and Presidential Executive Order No. 16 of 2023, signed on October 19, 2023.
According to the letter, the funds will be ring-fenced and invested in priority sectors with strong potential to stimulate economic growth, improve infrastructure, boost foreign exchange earnings, generate jobs, and deliver measurable returns.
“The local foreign currency issuance programme is a strategic move to enhance Nigeria’s external reserves, promote exchange rate stability, and deepen the domestic financial market,” Tinubu stated.
He explained that the Ministry of Finance and the Coordinating Minister of the Economy will recommend specific sectors for investment, subject to presidential approval and legislative appropriation.
While acknowledging that the bond issuance would increase Nigeria’s public debt and related servicing costs, Tinubu emphasized its advantages, including diversified funding sources, wider investor participation in FGN securities, and expanded investment products in the local market.
The President also noted that the programme would enable domestic and institutional investors to earn returns on U.S. dollar holdings while contributing to national development.
The Senate has referred the request to the Committee on Local and Foreign Debts, mandating it to review the proposal and report back within two weeks.
The Debt Management Office (DMO) is expected to manage the issuance process upon legislative approval, ensuring compliance with the stipulated framework and fiscal responsibility guidelines.
