Nigeria plans to double Diaspora bonds issue
Nigeria is to double the size of its Diaspora bonds issue, originally planned not to exceed $100 million (€ 73.7 million).Nigeria is to double the size of its Diaspora bonds issue, originally planned not to exceed $100 million (€ 73.7 million).
"We will ask the parliament in the next two or three weeks to increase the amount of Diaspora bonds up to between $200 million and $250 million," Director General of the Nigerian debt management Abraham Nwankwo told Bloomberg.
"Why should we limit this amount at 100 million? Wouldn't it be a frustration for the Nigerian Diaspora wishing to invest more in the economy of
this country?", he added.
issued by a country to its own Diaspora to tap into their assets in the destination country. According to the World Bank, the volume of money sent by migrants around the world to the African continent is currently bigger than the Official Development Aid (ODA) and reached nearly $40 billion (2.6% of the GDP) in 2010.
The African Development Bank (ADB) said in an economic note last year that Diaspora bonds are a "powerful" source of funding for African countries because the current economic crisis has shown that ODA is not going to grow in the future. Furthermore, Diaspora bonds and remittances are financed with the same resources – migrant savings – and during the recent crisis "remittances flows decreased by a much lower percentage than other capital flows".