The naira experienced its largest gain in almost two months, rising by 4.8% against the US dollar following the successful sale of Nigeria’s debut domestic dollar bond. This surge, the biggest since July 22, resulted in the currency closing at 1,558 naira per dollar on Wednesday, its strongest level since August 21.
The $500m domestic FGN US Dollar Bond, with a five-year maturity and 9.75% coupon, is part of a $2bn bond program aimed at critical sectors of the economy. Minister of Finance, Wale Edun, sees this bond as a pivotal step towards financial inclusion and economic growth. The broad investor base, including local, diaspora Nigerians, and institutional investors, signifies strong confidence in Nigeria.
The success of the bond sale not only demonstrates Nigeria’s appeal to investors but also contributes to the recent strength of the naira against the dollar. This achievement marks a significant milestone in Nigeria’s economic progress and paves the way for further growth and development.