Nigeria Plans to Raise $2.2B in Debt for Budget Funding

AFRICAN BUSINESS AND ECONOMYNovember 14, 2024 at 9:35 PM UTC

TLDR

Nigeria's Finance Minister plans to issue a $1.7 billion eurobond and $500 million in Islamic sukuk bonds to finance the 2024 budget.
The borrowing plan is set to be presented to lawmakers for approval, forming part of the amended Nigerian 2024 Appropriation Act.
Nigeria, as Africa's top oil producer, faces budgetary strain from challenges in oil production, limited tax revenue, and economic diversification issues.

Nigeria’s Finance Minister Wale Edun announced plans to issue a $1.7 billion eurobond and $500 million in Islamic sukuk bonds as part of its strategy to finance the 2024 budget. Authorities are working to present the borrowing plan to lawmakers this year, with hopes for swift approval.

These bonds form part of the amended Nigerian 2024 Appropriation Act. This follows Nigeria’s recent domestic sale of $900 million in dollar-denominated bonds in September to support budget needs.

As Africa’s top oil producer, Nigeria faces budgetary strain due to challenges in oil production, limited tax revenue, and limited economic diversification, impacting public finances.

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Key Takeaways

Nigeria’s use of eurobonds and sukuk bonds highlights its diversified approach to funding amid fiscal pressures from oil revenue disruptions and low tax collections. By tapping both international and domestic debt markets, Nigeria seeks to stabilize its finances while working to improve revenue streams and strengthen economic resilience in the face of ongoing budgetary challenges.

Nigeria

Economy

Budget Funding

Eurobond

Wale Edun

Finance

Sukuk