By Lucy Adautin
The Federal Government of Nigeria has expressed satisfaction with the latest report from the National Bureau of Statistics (NBS) which reveals a trade surplus of ₦6.95 trillion for the second quarter of 2024.
The report indicates that the current surplus is a 6.60 percent increase from the ₦6.52 trillion surplus recorded in the first quarter.
In a statement issued by the Special Adviser on Information and Strategy, Bayo Onanuga, the Nigerian Government conveyed optimism about the administration’s ongoing reforms, believing they will strengthen the economy and bring a new wave of prosperity to 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 percent 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.
Recently, 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, Edun noted that the oversubscription reflects investor confidence in Nigeria’s economic stability and potential for growth.
“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 diverse group of investors, including both local and international Nigerians, as well as institutional investors. The funds from the bond will be directed towards key economic sectors, as approved by President Bola Tinubu.
The $500 million domestic FGN US Dollar Bond, with a five-year term and a 9.75 percent interest rate, marks the first issuance in a $2 billion bond program registered with the Securities and Exchange Commission. Its structure allows the government to accommodate oversubscriptions up to the full $2 billion program limit.
Patience Oniha, Director-General of the Debt Management Office, hailed the bond’s success as a crucial step for Nigeria’s economic progress, highlighting that the $900 million raised from a variety of investors reflects the increasing maturity of Nigeria’s domestic fixed-income market.
