Nigeria Plans to Issue Diaspora Bond in the United States to Boost Remittances
Nigeria is considering issuing a diaspora bond in the United States to strengthen its ties with Nigerian expatriates and increase remittance inflows to $1 billion per month, as stated by Central Bank Governor Olayemi Cardoso.
During the IMF/World Bank autumn meetings in Washington, DC, Cardoso emphasized the significant investment interest from Nigerians abroad. He mentioned that remittances from Nigerians overseas have risen from $250 million to $600 million monthly following last year’s economic reforms.
Cardoso also hinted at the possibility of a diaspora bond being introduced in the United States in 2025. This move aims to capitalize on the eagerness of Nigerians living abroad to invest not just financially but also in assets and businesses within Nigeria. The country’s currency depreciation has made investments in Nigeria more attractive to overseas investors.
Recently, Nigeria launched its first dollar-denominated domestic bond in August, which exceeded expectations by raising over $900 million compared to the initial target of $500 million. Finance Minister Wale Edun, who also participated in the Washington meetings, hailed the oversubscription as a vote of confidence in Nigeria’s economic progress.
