Olayemi Cardoso, governor of the Central Bank of Nigeria (CBN), says the country is considering launching a diaspora bond in the United States as part of its strategy to achieve monthly remittance inflows of $1bn.
Cardoso disclosed this during an interview with Reuters on Thursday, held on the sidelines of the ongoing IMF/World Bank autumn meetings in Washington, DC.
He noted that Nigerians abroad are keen to invest and have already more than doubled the remittances they send home since the current government began implementing sweeping reforms last year.
“As a result, a diaspora bond in the United States, which is home to the largest concentration of Nigerians overseas, could be on the horizon in 2025.
“They really want to invest… beyond just financially,” Cardoso said of Nigerians abroad. “Our currency has now become extremely competitive and cheap, so they see the opportunity of taking positions in assets and businesses back home.”
Under the leadership of President Bola Tinubu, Nigeria has been addressing significant economic challenges, including a backlog of foreign exchange payments and high fuel subsidy costs.
Remittance flows rose to $600m in September, up from $250m per month earlier this year, and Cardoso is optimistic about reaching the ambitious goal of $1bn per month.
“I would be surprised if we are not there by this time next year,” he added, emphasising the positive outlook for remittance inflows as Nigeria seeks to strengthen its ties with its diaspora.
On August 15, the Federal Government launched its first-ever dollar-denominated domestic bond, with subscriptions starting at $1,000 per unit for interested investors on August 20.
The Finance Minister, Wale Edun, who is also in Washington, DC, told investors on Wednesday that the $500m domestic bond was oversubscribed, raising over $900m with a subscription rate exceeding 180 per cent.
Edun stated that this successful capital raise demonstrates continued investor confidence in Nigeria’s economic stability and growth prospects.
“The IMF advised us against issuing dollar bonds domestically. We proceeded and were 100 per cent oversubscribed, but we still valued their viewpoint and took it into account,” he said.
