The Nigerian Federal Government has engaged the services of prominent global investment banks, such as Citibank NA, JPMorgan Chase & Co., and Goldman Sachs Group Inc., to provide guidance for its upcoming Eurobond issuance.
Additionally, Standard Chartered Bank and the Lagos-based financial advisory firm Chapel Hill Denham have been appointed to consult on this venture. This Eurobond issuance will be the country’s first since 2022, marking its return to the international bond market.
This development, as reported by Bloomberg and informed by sources close to the transaction, underscores the intent of Africa’s leading oil-producing nation to re-engage with global financial markets in order to bolster its fiscal budget
The report stated that the size of the Eurobond offer which is expected before June is yet to be determined, the people who requested anonymity because they weren’t authorised to comment publicly on the matter, said.
It further added that the nation might aim to accumulate up to $1bn in international loans throughout 2024.
This external funding is crucial for Nigeria as it seeks to finance a substantial budget deficit outlined in President Bola Tinubu’s N28.8 trillion ($18 billion) spending blueprint for 2024, targeting a fiscal shortfall of N9.8 trillion, or 3.8 per cent of its GDP.
