Nigeria to issue diaspora bond in US, targets $1bln monthly remittances

Nigeria is planning to issue a diaspora bond in the United States next year, aiming to secure monthly remittance inflows of $1 billion.

Central Bank Governor (CBN) Dr. Olayemi Cardoso announced this at the International Monetary Fund (IMF) and World Bank meetings in Washington, D.C.

Expected to become a crucial financial instrument for the Nigerian government, the proposed bond targets the US, home to the largest population of overseas Nigerians.

The diaspora bond is anticipated to attract funds held abroad by Nigerians, with remittances already reaching $10.4 billion in the first half of the year.

The CBN chief said that Nigerians living abroad have doubled their remittance contributions since the current administration initiated significant reforms last year.

He said: “The bond’s attractiveness lies in the current competitive and depreciated value of the naira, making local assets and businesses more appealing to diaspora investors.

“The Central Bank will closely monitor inflation and allow economic indicators to guide interest rate decisions.”

Cardoso stressed the importance of policy consistency in attracting long-term foreign investment, acknowledging that investors are still assessing the evolving economic environment.

“Engagements with investors, rating agencies, and the diaspora have validated the government’s reform agenda.”

Persecondnews recalls that at the World Bank-IMF Spring Meeting in April, the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, disclosed that the Federal Government of Nigeria has plans to float a Diaspora Bond to attract funds held abroad by Nigerians at home and in the diaspora.

He observed that remittances are certainly one of the ways the nation can increase the supply of foreign exchange and investment in the country.

The Minister added: “There are Nigerians abroad who are doing very well. Even Nigerians in Nigeria with funds abroad that can be counted as remittances in order to increase the supply of foreign exchange into the economy.

“Government is looking at attracting those funds through a Diaspora kind of instrument, a Diaspora Bond, we think, that will be attractive enough for Nigerians abroad and for foreign holdings of foreign currencies and look to having a substantial issue later in the year.”