Abuja, Nigeria (EPICSTORIAN )— Vice President Kashim Shettima has hailed Nigeria’s successful issuance of a $2.2 billion double-tranche Eurobond, describing the strong investor interest as a testament to global confidence in the country’s economic policies.
Speaking at the Supervisory Board meeting of the Debt Management Office (DMO) in Abuja, Shettima highlighted the significance of the oversubscription, noting that it reflects international recognition of the Tinubu administration’s ongoing economic reforms.
“The overwhelming response to our Eurobond issuance demonstrates global confidence in Nigeria’s economic direction. It underscores the effectiveness of our fiscal policies and commitment to debt sustainability,” Shettima stated.
Eurobond Issuance and Market Confidence
The $2.2 billion Eurobond, issued in two tranches, saw robust demand from international investors, further reinforcing Nigeria’s standing in the global financial market.
Analysts have pointed to the oversubscription as a positive sign, suggesting that despite prevailing economic challenges, investors remain optimistic about the country’s long-term growth potential.
According to financial experts, the successful bond issuance not only provides Nigeria with much-needed foreign exchange liquidity but also enhances its credit standing among international lenders.
The funds are expected to be used for infrastructure development and other strategic national projects aimed at boosting economic growth.
Shettima emphasized that responsible debt management remains a priority for the government, reiterating that borrowing will continue to be approached strategically to ensure long-term economic benefits.
“With prudent management, public debt can serve as an asset rather than a liability. This bond issuance aligns with our administration’s efforts to foster economic stability and attract sustainable investments,” he said.
Aligning with Economic Reforms
The Vice President also commended President Bola Ahmed Tinubu for his economic initiatives, which he said have strengthened investor confidence.
He pointed to key reforms, including efforts to unify Nigeria’s foreign exchange market, remove fuel subsidies, and attract foreign direct investment, as factors contributing to the Eurobond’s success.
“The strategic policies of the Tinubu administration are creating an environment where international investors see Nigeria as a viable and attractive market. This is a clear signal that our economic reforms are gaining traction,” Shettima remarked.
Strengthening Fiscal and Monetary Coordination
Shettima further stressed the need for closer coordination between Nigeria’s fiscal and monetary policies to ensure that borrowed funds are efficiently deployed for economic growth. He urged the DMO, the Central Bank of Nigeria (CBN), and the Ministry of Finance to work in synergy to maintain investor confidence and sustain the country’s debt profile.
“As we celebrate this milestone, it is crucial that we remain disciplined in our fiscal approach. Strategic debt management, coupled with sound monetary policies, will ensure that Nigeria maximizes the benefits of these financial instruments,” he added.
Outlook on Future Borrowing
Financial analysts have suggested that Nigeria’s ability to secure substantial foreign investment through bond markets could help stabilize the naira and reduce pressure on foreign reserves.
However, they caution that the government must ensure the effective utilization of borrowed funds to generate economic returns.
With the latest Eurobond issuance, Nigeria continues to position itself as a resilient player in the global financial market, leveraging international capital to drive national development.
