The Federal Government (FG) will launch its planned Eurobond issue on October 11, finance minister, Zainab Ahmed has said.
Zainab Ahmed also said the country would hold roadshows for the dollar-denominated issuance in Lagos and New York.
The Debt Management Office (DMO) has previously said the Eurobonds are aimed at raising funds for external borrowing of N2.343 trillion ($5.7 billion) earmarked in the 2021 spending plan to partly finance the government’s deficit.
Nigeria, Africa’s largest economy, is struggling to boost growth after exiting its second recession since 2016 in the fourth quarter of last year. Its incoming statistician-general has said the nation is targeting gross domestic product growth above five per cent for 2021.
Its economy grew 5.01 per cent in the second quarter, according to statistics released last week, as an easing of COVID-19 lockdown measures and an increase in vaccinations boosted commercial activities. However, persistently high inflation has dogged the nation.
The government is also targeting raising the same amount via multilateral and bilateral borrowing to fund its 2021 budget deficit.
“We have an approval in the 2021 budget to fund the budget deficit 50 per cent locally and 50 per cent externally,” Ahmed said.
“We are planning to do about half of that in eurobonds and the other half through other windows such as multilateral and bilateral sources.”
The National Assembly (NA) in July approved external borrowing of roughly $6.2 billion.