Nigeria Achieves ₦6.95 Trillion Trade Surplus; FG’s $500 Million Dollar Bond Attracts $900 Million in Subscriptions
President Bola Tinubu has praised the latest report from the National Bureau of Statistics, which reveals that Nigeria achieved a significant trade surplus of ₦6.95 trillion in the second quarter of 2024.
The National Bureau of Statistics’ latest report indicates that Nigeria’s trade surplus reached ₦6.95 trillion in the second quarter of 2024, marking a 6.60 percent increase from the ₦6.52 trillion surplus recorded in the first quarter.
In response, President Bola Tinubu, through a statement by his Special Adviser on Information and Strategy, Bayo Onanuga, expressed confidence in the ongoing reforms of his administration. He believes these reforms will strengthen the economy and usher in a new era of prosperity for Nigerians.
The report highlights the country’s strong export performance during the second quarter. This positive economic news follows the recent successful issuance of Nigeria’s first $500 million domestic bond, which was nearly twice oversubscribed, and the impressive half-year revenue of ₦9.1 trillion.
The National Bureau of Statistics (NBS) reported that the trade surplus for the second quarter of 2024 was significantly driven by strong export performance to Europe, the United States, and Asia.
FG’s Dollar Bond Secures $900 Million in Subscriptions
On Wednesday, Wale Edun, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, announced that the country’s first-ever foreign-currency domestic bond has attracted $900 million in subscriptions.
Discussing the results of this landmark bond issuance, Edun highlighted that the strong investor interest underscores confidence in Nigeria’s economic stability and growth prospects.
“The issuance of this inaugural domestic FGN US Dollar Bond demonstrates the enduring trust investors have in Nigeria’s economy,” Edun remarked.
He also expressed satisfaction with the initiative, noting, “As Chair of the African Caucus, I am particularly pleased that this launch not only enhances Nigeria’s economic resilience but also broadens the capital markets for African economies.”
The newly issued $500 million domestic FGN US Dollar Bond has garnered $900 million in subscriptions from a diverse group of investors, including Nigerians both locally and abroad, as well as institutional investors. The bond proceeds are earmarked for allocation to critical economic sectors, as sanctioned by President Bola Ahmed Tinubu.
This bond, with a five-year maturity and a 9.75 percent coupon, represents the first tranche of a $2 billion bond program registered with the Securities and Exchange Commission. The bond’s structure permits the government to accommodate oversubscriptions up to the full $2 billion program limit.
Patience Oniha, Director-General of the Debt Management Office, hailed the bond’s success as a significant milestone for Nigeria’s economic development. She emphasized that the $900 million raised from a broad spectrum of investors reflects the growing sophistication of Nigeria’s domestic fixed-income market.
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