Nigerian govt suspends plans to borrow $950m from foreign investors

The Nigerian government has suspended its plans to borrow from the international debt market by offering Eurobond to raise funds for 2022 budget deficits.

Ripples Nigeria in a previous report raised concerns on how tapping into the international debt market would be too expensive.

The report also revealed that in March the $1.25 billion Eurobond came at a premium price of 8.375 per cent.

Following difficulties to get better pricing for the debt instrument, the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, disclosed that the federal government was suspending the exercise.

According to her, the market was unfavourable during the time frame approved for the fundraising.

“We were not able to do that (issue the Eurobond) because the market pricing was not good and also the approval period for us has closed.

“The approval period was up to May 31, 2022. So, we are not going to be able to take that one anymore,” the Minister was quoted as saying by Bloomberg on the sidelines of the Islamic Development Bank meetings in Egypt.