Nigeria’s Finance Minister, Kemi Adeosun will today in London meet with bond investors to pitch for foreign denominated funding. The Nigerian government plans to fund about half of its debt needs via foreign loans. The government also plans to borrow N900 billion locally to fund part of its budget deficit of about N2.2 trillion.
An article on Bloomberg explains that the Minister is likely to face very tough questions with Bond Investors over Nigeria’s forex policy which they believe has hindered capital inflows into Nigeria.
While they’re interested in plans to revive growth, investors said they will also demand to know when and how the central bank will end capital controls and a currency peg that have starved the country of dollars and slowed foreign investment to a trickle. Tapping the offshore bond market this year is crucial for Nigeria to fund a budget of 6.1 trillion naira ($31 billion) meant to stimulate the economy, according to Rand Merchant Bank. Bloomberg