Nigeria planning to borrow up to $5 billion
The country is turning to capital markets as it struggles with the fall in oil prices.Nigeria plans to borrow up to $5 billion (€4.6 billion) from various sources, including capital markets, as it struggles with economic troubles sparked by the recent fall in oil prices.
"We hope to raise approximately $4.5 - 5 billion from multiple external sources. This includes multilateral agencies, export credit agencies and we are also planning to tap the Eurobond market," Finance Minister Kemi Adeosun wrote in a note seen by Reuters.
The country has stepped up debt issuance in recent months to gather resources in a bid to counter the global slump in oil prices.
Nigeria already issued an 80 billion naira (€370 million) bond on January 20th and 67.45 billion naira in treasury bills at the end of December.
Credit Suisse estimates debt issuance will increase to $41 billion in 2016 from $30 billion this year.
The country generates 70 per cent of its revenue and about 90 per cent of its export earnings from oil.
The fall in oil prices led the naira to tumble 21 per cent between June 2014 and February 2015, and last week, it fell to a record low of 305 to the dollar on the parallel market.