Archive Nigeria to Hold Investor Roadshow Next Week

Nigeria to Hold Investor Roadshow Next Week

-

- Advertisment -

Chijioke Ohuocha and Oludare Mayowa

Nigeria will hold a non-deal roadshow in London next week, government sources said on Wednesday, as Africa’s biggest economy explores fund-raising options to finance a record budget deficit widened by the fall in vital oil revenues.

Finance Minister Kemi Adeosun and officials from the central bank and debt office will meet investors next Tuesday to update the market on government policies. Standard Chartered Bank is organising the meeting, the source said.

Nigeria plans to borrow as much as $10 billion from debt markets, with about half of that coming from foreign sources, to help fund a budget deficit worsened by the slump in oil prices that has slashed revenues and weakened the naira.

“It’s non-deal roadshow to explain government policy to investors. There’s no transaction. It’s been a while since the government came to London to update investors on what’s happening,” he said.

The head of the Debt Management Office told Reuters last week Nigeria is likely to sell a eurobond this year.

Nigeria has pushed ahead with some reforms meant to free up cash to invest in badly needed infrastructure, but critics worry about the pace, given the loss of oil revenues and a currency peg that has caused the economy to contract.

In mid-May the government hiked petrol prices by 67 percent to 145 naira, ending an expensive subsidy scheme that has cost it billions of dollars. It used a rate of 285 naira to the dollar to set the prices, compared with an official rate of 197.

The move prompted the central bank to abandon its 15-month naira peg to the dollar to adopt a flexible currency regime, a policy U-turn designed to boost exports and local manufacturing and to stave off a recession.

But the bank has yet to clarify how the new policy announced last week will work, spooking foreign investors long worried about getting caught in the middle of a devaluation.

President Muhammadu Buhari for months rejected calls to devalue the naira. However, during his Democracy Day speech on Sunday he backed the central bank’s decision to move away from a currency peg that is seen as overvaluing the naira.

A banking source in London told Reuters that the market was in the dark over the central bank’s new currency policy.

“The reason why Nigeria is reluctant to come to the market is that the government knows investors will ask about the currency issue,” the banker said.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest news

Let’s Record Zero Crime During Your Stay – Yahaya Bello Tasks New Army Commandant

Kogi State Governor, His Excellency Yahaya Bello has charged the new Commandant of the Nigerian Army Records, Chari Megumeri...

Our Security Template Focuses On Communal Collaboration, Honesty, Synergy – Gov. Bello

….says he doesn’t visit Abuja for solution to security challenges Kogi State Governor, Yahaya Bello has revealed that the successes...

2021 World Education Day: ActionAid Nigeria Calls For Increase Allocation To Education From 15% – 20%

As the World marks the 2021 International Education Day, a Non-Governmental Organization, (NGO), ActionAid Nigeria, has called for an...

COVID-19: Bill Gates backs Yahaya Bello’s position on need to invest in healthcare

Mayowa Adeniran|  The recent position of one of the world's richest, Bill Gates, has corroborated the agitations of Kogi State...

JONAPWD-LAGOS Commends Sanwo-Olu For Restoring Disability Empowerment Fund

Kenneth Afor |  The Joint National Association of Persons Living With Dissabilities (JONAPWD ) in Lagos state has commanded Babajide...

Groups Call On Judicial Panels Of Inquiry To Dispense Justice On Victims, Survivors Of Police Brutality

Kenneth Afor | The Network on Police Reform in Nigeria (NOPRIN) and Centre for Law Enforcement Education (CLEEN Foundation) has...

Must read

Let’s Record Zero Crime During Your Stay – Yahaya Bello Tasks New Army Commandant

Kogi State Governor, His Excellency Yahaya Bello has charged...

Our Security Template Focuses On Communal Collaboration, Honesty, Synergy – Gov. Bello

….says he doesn’t visit Abuja for solution to security...
- Advertisement -

You might also likeRELATED
Recommended to you

%d bloggers like this: