Nigeria Unveils Plans for Diaspora Bond and Secures World Bank Funding
By Patience Ikpeme
In a bid to tap into funds held by Nigerians abroad, the Federal Government has announced plans to launch a Diaspora Bond, aiming to attract investments from Nigerians overseas and foreign holders of foreign currencies.
The disclosure came from Mr. Wale Edun, Minister of Finance and Coordinating Minister for the Economy, during his Wrap Up 2024 World Bank-IMF Spring Meetings’ media briefing in Washington DC.
Mr Edun highlighted the potential of remittances to boost foreign exchange supply and investment within Nigeria, stating, “There are Nigerians abroad who are doing very well. Even Nigerians in Nigeria with funds abroad that can be counted as remittance.” He emphasized the government’s intent to leverage a Diaspora Bond to mobilize these funds, ensuring an attractive investment opportunity later in the year.
Additionally, the Minister revealed that Nigeria has qualified for a substantial World Bank facility amounting to $2.25 billion. This package, he explained, offers favorable terms resembling a grant, with a 40-year repayment period, a 10-year moratorium, and a nominal 1 percent interest rate.
Speaking on efforts to bolster foreign exchange inflows, Mr Edun highlighted initiatives including low-interest funding from the African Development Bank and ongoing discussions with foreign direct investors to attract major inflows into the country.
“The Spring Meetings provided us with a platform to engage international investors and stakeholders,” Mr Edun stated. He noted a positive response from these entities, expressing increased confidence in Nigeria’s economic management and a heightened willingness to invest in projects that foster industrial growth and job creation.
Edun emphasized President Bola Ahmed Tinubu’s policy of promoting private sector-driven economic growth, which complements ongoing engagements with multilateral organizations, development banks, and other international financiers.
Regarding domestic economic strategies, Mr Wale Edun outlined measures aimed at tackling inflation and attracting foreign exchange inflows, including issuing dollar-denominated securities targeted at Nigerians in the diaspora and those with foreign-denominated savings in Nigeria. He underscored the alignment between fiscal and monetary policies in addressing inflation and promoting foreign exchange inflows.
The Minister highlighted key sectors targeted for growth under the current administration, particularly agriculture, with initiatives such as the distribution of fertilizers and seeds to enhance food security. He also mentioned plans to increase power generation to 6000 megawatts within six months and prioritize infrastructure development, including housing with the goal of making low-interest mortgages accessible to Nigerians.
In conclusion, Mr Edun expressed optimism about Nigeria’s economic trajectory, citing ongoing adjustments and the resilience of the nation’s populace as catalysts for a brighter and more prosperous future.
