Nigeria’s roadshow for $1bn Eurobond may run into hitch

Nigeria’s Debt Management Office (DMO), said its one-week roadshow had successfully taken off in London aimed, at promoting a planned $1 billion investment loan into the Nigerian economy.

The failure of the Federal Government in appointing an expert on advisory capacity on the management of the fund is however causing some ripples in many quarters after Tuesday’s launch.

An official however informed that the appointment of an adviser is said to be a pre-condition for the success of raising such a bond.

Finance Minister, Kemi Adeosun, who was said to be out of the country for a World Bank meeting in Washington, would join the team later among other top government officials scheduled to take part in the show, the official said.

“Yes , we are currently on the roadshow to the UK and US as a pre-marketing engagement with prospective investors in Nigeria and it is in line with long-planned event as part of the economic activities to boost Nigeria’s economy,” an official of the DMO said.

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But observers say the failure of the Federal Government to have appointed a qualified firm or individual on advisory capacity on how to deploy the funds is already not going down well among targeted foreign investors.

It was leant that the potential investors, apparently worried by negative news of corrupting in the country had requested for an independent firm, or an expert that they could entrust their investment bond onto.

But the assurance that such appointment would be made before the roadshow was yet to be fulfilled.

However, an official said that was not a precondition for having a successful show, adding, “Nigeria is not the only country to have undertaken such approach to attract investment. Yes, to appoint of adviser is possible, but it is not a precondition to having the event.”

He said Nigeria still has up to October 19 to appoint such an adviser.

The DMO, however, says it expects to raise more than $1 billion from the Eurobond market by mid-December, as part of Nigeria’s plans to borrow a total of 1.8 trillion naira ($5.8 billion) from abroad and at home to fund an expected budget deficit of 2.2 trillion naira this year.

Nigeria’s economy has slid into recession for the first time in more than 20 years, brought about by low oil prices and Niger Delta crisis, both of which have slashed government revenues and weakened the currency.

By Emma Eke….

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