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Nigeria to raise $6.1 billion from overseas

The Finance Ministry's Tweet - Tekedia

Nigeria will go borrowing. This has been revealed by the finance minister in an interview with Bloomberg. The Minister said, ‘’The government has approved to raise $6.1 billion from overseas. So we are looking at doing half of that in the Eurobond market and the other half from bilateral and multilateral sources. Depending on how the market goes, maybe we can do a little bit more.’’

‘’The government is now working to reduce its debt-service burden by increasing revenue, restructuring its debt portfolio through the conversion of expensive short-term notes into longer tenors, and also reducing its overall borrowing. Our target is to triple revenues from about 8% of GDP to 15%, and also grow the economy by 7%.’’

The nation expects to manage inflation: “We certainly feel we have passed the worst of it. Our projection is that inflation will continue to go down throughout 2021 and also 2022. Target is to get to single digit inflation by 2023.”

‘’There is an indication that the market will still squeeze a little bit more. We have been lucky so far that prices have been trending upwards but anticipate that prices will go down. So we are prepared for the worse. We hope that it does not go below $40 a barrel.”

“The central bank is doing everything within limited constraints to stabilize the currency. The SDRs of $3.35 billion just received from the International Monetary Fund have helped shore up the reserves and will help stabilize the currency. Also, the withdrawal by the central bank of funding to unauthorized dealers will increase supply to the formal market to meet demand.

“We are trying to convert the central bank borrowing into debt notes and also cut borrowing to what the regulation provides.”

All this can be solved if we allow industrialization. Our solution is very simple.