Reuters reports that two banking sources confirmed Nigerian officials will go on a road show to London next week, ahead of a planned $2.8 billion Eurobond sale this month.
The roadshow, which will run from November 12, 2018 for three days, is being organised by Citi and Standard Chartered and will be attended by Nigerian Finance Minister Zainab Ahmed.
Back in October 2018, the Senate approved the Eurobond Issue as a means to finance part of the 2018 budget. However a presentation by the Chairman of the Senate Committee on Local and Foreign Debts, Senator Shehu Sani emphasised the need for government to limit foreign borrowing and boost revenue generation.
To fund part of the country’s 2017 budget, Nigeria sold $3 billion in Eurobonds last year. The country then followed with a $2.5 billion Eurobond sale in February 2018 to refinance local currency bonds at a lower cost.
Lawmakers expressed concern by noting that the new bond issue will raise foreign borrowing to 32 percent of Nigeria’s total debt, up from 30 percent at June 2018.
Speaking on the issue, Ms. Patience Oniha, the Director General of the Debt Management Office, noted that Nigeria’s debt stock is not too high, she said “the problem is that we need more revenues so that we are not using a large part of our revenue to service debt”.
Nigeria approved a three year plan in 2016 to borrow more money from foreign countries. The West African country wants 40 percent of its loans to come from offshore sources to lower borrowing costs and help to fund record-high budgets.