Investing.com - Financial Markets Worldwide

Nigeria not looking to issue Eurobonds, Vice President says

Published 10/10/2020, 20:04
Updated 10/10/2020, 20:06

By Felix Onuah
ABUJA, Oct 10 (Reuters) - Nigeria will avoid issuing
Eurobonds due to their expense, Vice President Yemi Osinbajo
said, and will look at alternative ways to raise funds to
support the economy in the face of a looming recession.
"We are not likely going to explore again the Eurobond
market because we are trying to avoid commercial borrowing,"
Osinbajo told journalists in a group interview late on Friday.
Nigeria's economy has been hobbled as the coronavirus
pandemic has triggered a crash in the price of oil, its main
export, and an exodus of foreign investors.
Nigeria is likely to enter recession in the third quarter
after its economy contracted 6.1% in the second quarter. The
government expects the economy to shrink as much as 8.9% this
year.
On Thursday, the government presented a record 13.08
trillion naira ($34.4 billion) 2021 budget to lawmakers,
targeting a return to growth. Osinbajo said Nigeria is looking at World Bank loans rather
than Eurobonds, though the lender delayed a $1.5 billion
facility in August, expressing concern that Nigeria had not
adopted a unified, flexible exchange rate to close the gap
between official and black market naira rates.
"All of us agreed that we must close the arbitrary gap but
this is the function of the central bank," Osinbajo said.
Nigeria also aims to build 300,000 low-cost homes in a year
and guarantee loans to farmers to boost food production.
"The basic problem we have is productivity and (the) problem
of not having capacity and being able to produce," said
Osinbajo.
Food inflation, which accounts for much of the inflation
basket, has been in double digits for more than three years.

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.