Dr Zainab Ahmed, Minister of Finance, Budget, and National Planning, stated that the Federal Government raised N669 billion from the Nigerian capital market through the issue of Sukuk Bonds.
On Thursday, Ahmed stated this during the Chartered Institute of Stockbrokers (CIS) 2021 national workshop.
The national workshop’s focus was “Leveraging Financial Markets to Achieve Double-Digit Economic Growth for Nigeria”.
She stated that the Federal Government raised N669 billion from the capital market through the Debt Management Office (DMO) between 2018 and 2020.
“The Federal Government through the DMO had raised to N669 billion from the capital market through three different issuances of Sukuk Bonds. This financing was used to construct and rehabilitate more than 44 roads across the six geo-political zones of our country”.
“Also worthy of note is the offer for subscription of the Federal Government of Nigeria Savings Bonds of the DMO which has been executed successfully, bond issue after bond issue”.
“What is pleasing to us is that every time the DMO goes for the bond issue, the bond are several times oversubscribed. This shows the interest of the investing public in Nigeria putting their monies to support the Federal Government of Nigeria in bridging our infrastructure deficit gaps,’’ Ahmed said.
The Federal Government is expected to issue another Eurobond to cover its capital deficit in September.
The Federal Government of Nigeria also has access to the international markets with several Eurobonds issuance to finance capital deficit and the next round of Eurobond issuance would be sometime in September this year.
We will be going out to the international capital market and already we have very positive indications to that regard,’’ she added.
Ahmed revealed that the Federal Government has approved the formation of an Infraco Firm, an infrastructure company envisioned as a world-class infrastructure development vehicle for Nigeria; adding that it’s a known fact that no nation of the world attains optimal infrastructure development without the efficient use of its capital market. She stated that she appreciates the important role of the Nigerian capital market; the role that it has played over the years and it will continue to play in the infrastructure financing and capital formation of our country.
The NCM has over the years provided access to significant long-term development projects to the government of Nigeria and also to the other tiers of government and also the private sector. In an attempt to achieve economic growth, the government had earlier developed the ERGP 2017 to 2020, it was a medium-term plan designed to muster growth and build a globally competitive economy.
Through the diversification of the economy to increase investment in infrastructure, digitisation of the economy, improvement in the ease of doing business, and development of human capital. The year 2020 was like no other year, particularly due to the impact of the COVID-19 pandemic, our three-year consecutive growth in the GDP was stalled at the second quarter of 2020 by the harsh economic impact of the global pandemic.
She indicated that the 2020 budget for sustaining growth and job creation had to be abandoned in response to the fiscal pressures arising from the pandemic.