Nigeria has enlisted the expertise of leading global investment banks, including Citibank NA, JPMorgan Chase & Co., and Goldman Sachs Group Inc., to guide its forthcoming Eurobond issuance.
This development, as reported by Bloomberg and informed by sources close to the transaction, underscores Africa’s most prolific oil-producing nation’s intent to re-engage with global financial markets to support its budgetary needs for the fiscal year.
This move marks the country’s return to the international bond market after a two-year pause. In March 2022, the country raised $1.25 billion through Eurobond issuances.
While the exact magnitude of the Eurobond offering, anticipated to be unveiled before the mid-year mark, remains undecided, insiders, who preferred to remain anonymous due to the sensitive nature of the information, speculate that the nation might aim to accumulate up to $1 billion in international loans throughout 2024.
This external funding is crucial for Nigeria as it seeks to finance a substantial budget deficit outlined in President Bola Tinubu’s N28.8 trillion ($18 billion) spending blueprint for 2024, targeting a fiscal shortfall of N9.8 trillion, or 3.8% of its GDP.
The deficit is expected to be bridged through local and international borrowings and assistance from global financial institutions.
