Nigerian officials are set to meet bond investors in London next week,as the federal government mulls exploring international debt markets for the first time in three years to help finance its record budget deficit, a source privy to the move disclosed.
It was learnt that Finance Minister Kemi Adeosun will head the meetings on June 7, which have been arranged by Standard Chartered Plc.
Abraham Nwankwo, head of Nigeria’s Debt Management Office (DMO), Dami Adesanya, an adviser at the finance ministry, and a representative of the central bank will be part of the Nigerian delegation, the source revealed.
According to Standard Life Investments Ltd., the talks will probably border on Nigeria’s currency controls and its policy of pegging the naira against the dollar.
Reuters said Nigeria plans to borrow as much as $10 billion from debt markets, with about half of that coming from foreign sources, to help fund a budget deficit worsened by the slump in oil prices that has slashed revenues and weakened the naira.
“It’s non-deal roadshow to explain government policy to investors. There’s no transaction. It’s been a while since the government came to London to update investors on what’s happening,” a source said.