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FGN accuses Nigerians in diaspora of funding secessionist groups - ITREALMS

ITREALMS ... making leadership SENSE with digital news! The Federal Government of Nigeria has accused some Nigerians in Diaspora of funding ...

Wednesday, April 20, 2016

Reps authorize FG to increase diaspora bond to $300m

The House of Representatives has authorized the Federal Government to increase the Diaspora Bond from $100 million to $300 million as part of FG borrowing plan, reports ITRealms.

The authorization, ITRealms gathered, was given during the consideration of the report of the Hon. Garba Shehu Sarkin Noma-led Ad hoc committee, mandated to work on the presidential request at the Committee of the Whole presided over by the Deputy Speaker, Hon. Yusuf Lasun, Tuesday.

ITRealms also gathered that the Diaspora Bond was captured in the federal government’s external borrowing plan 2016-2018 as a means of diversifying the sources of government funding for capital projects in priority areas such as roads, railways and power.

The diaspora bond, ITRealms reports, reduces the interest cost of government’s borrowing as it is an inexpensive way to raise funds for developmental projects.

ITRealms recalls that in January 2011, Nigeria issued €500 million bond to announce its entrance into the international capital market for a tenor of 10 years, issued at the rate of 6.75 per cent, with the subscription rate at 260 per cent.

This was followed by another successful float of €1billion bond in July 2013 which was in dual tranches of €500 million bond each.

However, the first tranche of €500 million bond in 2013 was for a tenor of five years, issued at the rate of 5.125 percent, with the subscription rate at 346 percent.

The second tranche of €500 million bond, ITRealms further gathered, was for a tenor of 10 years, issued at the rate of 6.375 per cent and at a subscription rate of 445 per cent.

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