Emma Ujah, Abuja Bureau Chief
Nigerian companies are now taking advantage of the window opened through the successful issuance of Nigerian Sovereign Eurobonds, to raise long term funds, having issued a total of nine bonds to raise $30.4 billion from the International Capital Market.
The Director General of the Debt Management Office, DMO, Dr. Abraham Nwankwo disclosed this in Abuja, yesterday.
According to him, “for the first time in Nigeria’s economic history, the private sector have been enabled to access long term funds from both the domestic and international capital markets.
“The successful issuances of three Nigerian Sovereign Eurobonds in the International Capital Market B one in 2011 and two in 2013 have opened the window for Nigeria’s private sector to raise required foreign currency funds.”
Dr. Nwankwo added: “They are now able to fund long term real sector projects (agriculture, manufacturing, housing, mineral exploration and processing, infrastructure, among others), for diversified and sustainable economic growth, towards employment generation and poverty reduction.”
On the domestic front, “between 2007 and 2013, as many as 22 Nigerian companies raised over N223 billion from the domestic market,” he said.
The DG noted that the success recorded was part of the Transformation Agenda of President Goodluck Jonathan, whom he said, has provided the enabling environment for the organisation’s effective operations.
He explained: “Positive change is taking place in various facets of the economy, the Domestic Bond Market has been meticulously developed with appropriate products and institutional frameworks so that long term debt capital (bonds) with tenor of up to 20 years can now be easily sourced in Nigeria.”
Dr. Nwankwo solicited the collaboration of all stakeholders to “sustain the momentum and make maximum use of the opportunities as patriotic responsibility demands the commitment of all in continuation of the positive transformation that is taking place.”
The DMO boss also urged both public and private organisations that have raised funds from the domestic and international capital markets to utilise the proceed in order to sustain the trend.