Nigeria’s Finance Minister, Kemi Adeosun, recently met with London-based investors to provide an update on the government’s plans for economic reform, investment and growth.
The day-long event organised by Standard Chartered Bank was aimed at updating holders of the Federal Government’s existing international bonds on recent developments in the country and the near term economic outlook, as well as developing a greater understanding of the government’s economic strategy amongst the global investment community.
Nigeria’s Eurobonds have rallied significantly since the beginning of the year, with the average yield on Nigeria’s July 2023 Eurobond contracting approximately 200bps since the peak in mid-January, buoyed by increasing confidence and the global oil price recovery. Joined by representatives from the Ministry of Finance, Debt Management Office and the Central Bank of Nigeria, Minister Adeosun outlined the new reform agenda being implemented in Nigeria.
Sixty five representatives of some of the largest European and global investment managers were able to engage with the Minister about the government’s reform strategy and plans for financing infrastructure development and growth.
The Minister spoke of the new administration’s commitment to resetting the economy through its initiatives in fighting corruption, plugging leakages, improving efficiency and implementing a culture of financial discipline across all tiers of government.
The Minister also spoke on the administration’s strategy of targeted capital investment to be funded from prudent borrowing which will address the infrastructure deficit, eliminate barriers to growth and create an enabling environment for private investment. The core aim of the strategy is to diversify the economy from the historical dependence on oil.
Adeosun said after the event: “The non-deal roadshow is part of our investor relations outreach to engage with holders of our sovereign bonds. We plan to continue the engagement over the coming months.”