*Analysts Call For Removal Of Internal Contractions Within Economy
Nigeria’s President Bola Tinubu has welcomed the National Bureau of Statistics’s new report which states that the country recorded another trade surplus in the second quarter of 2024, hitting ₦6.95tn.
According to the report, the current surplus is 6.60 per cent higher than the ₦6.52tn surplus recorded in the first quarter.
In a statement by the Special Adviser on Information and Strategy, Bayo Onanuga, President Tinubu expressed confidence in the reforms his administration is pursuing, and believed they will create a more robust economy that will usher in a new era of prosperity for Nigerians.
The NBS report, according to the presidential aide, reflects the country’s strong export performance in the second quarter, and comes just days after the country recorded almost 100 per cent oversubscription of its first $500m domestic bond and half-year revenue of ₦9.1tn.
The NBS reported that exports drove the Q2 surplus to Europe, the United States and Asia.
FG’s Dollar Bond Attracts $900m Subscription
On Wednesday, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun said Nigeria’s first-ever foreign-currency domestic bond has secured $900m in subscriptions.
While discussing the results of the historic bond issuance on Tuesday, Edun noted that the oversubscription reflects investor confidence in Nigeria’s economic stability and potential for growth.
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“The issuance of this inaugural domestic FGN US Dollar Bond highlights the continued faith investors have in Nigeria’s economy,” Edun said.
“I am particularly pleased that as Chair of the African Caucus, we have launched an initiative that not only strengthens Nigeria’s economic resilience but also expands the horizon for capital markets of African economies.”
The bond attracted a wide range of investors, including Nigerians both locally and abroad, as well as institutional investors. The proceeds from the bond will be allocated to critical economic sectors, as approved by President Bola Ahmed Tinubu.
The $500 million domestic FGN US Dollar Bond, with a five-year maturity and a 9.75 per cent coupon, is the first tranche of a $2bn bond programme registered with the Securities and Exchange Commission. The structure of the bond allows the government to absorb oversubscriptions up to the full $2bn programme limit.
The Director-General of the Debt Management Office, Patience Oniha, described the bond’s success as a pivotal moment for Nigeria’s economic development. She noted that the $900m raised from diverse investors underscores the growing sophistication of Nigeria’s domestic fixed-income market.
However, some analysts say the positive signals portend better things to come while hoping that it they will trickle down to impact positively on the lives of the masses.
“Although, these are signs of positive things to come, we are watching with bated breadth the overall pact on the lives and well-being of the citizens. For now, we are reading the figures being reeled out, but our lives are yet to be impacted positively. There is need for the president to tackle some of the internal contradictions within the economy that are inhibiting local production, and not until these are resolved, investors would continue to remain on the sidelines,” say an analyst who pleaded for anonymity.
