The federal government says it is working with Austrian
authorities and the Vienna stock exchange to establish a bond vehicle that will
raise capital to finance foreign companies investing in projects in Nigeria.
Atiku Bagudu, minister of budget and economic planning,
spoke while addressing the GPF Global Vienna meeting in Vienna, Austria, on
Tuesday via video message on X.
Bagudu said the vehicle, called Esme bond, had been created
after about 18 months of engagement between Nigerian and Austrian officials,
the Vienna stock exchange and fund managers.
He said the vehicle has Austrian nationals on its board and
representatives of the Nigerian government through the Ministry of Finance
Incorporated (MOFI).
“The idea is that this vehicle will float bonds on the
Vienna Stock Exchange in order to fund Austrian companies or other businesses
in green technology, waste to energy, textiles, pharmaceutical, as well as
agricultural companies,” Bagudu said.
He said the companies would be expected to bring their
expertise to Nigeria, invest and scale up their operations.
Bagudu said the initiative was part of efforts to mobilise
the private capital needed to support President Bola Tinubu’s target of growing
Nigeria’s economy to $1 trillion.
“Our president had given us a target that let’s aim for a $1
trillion economy, and a $1 trillion economy requires a lot of private capital,”
he said.
The minister said the government was working to complete
outstanding requirements for the bond placement.
He also said Nigerian bonds had become more attractive to
foreign investors following the relative stability of the naira, adding that
some investors had recorded dollar returns of nearly 20 percent.
The minister said Nigeria’s foreign reserves had risen above
$50 billion, providing more than 11 months of import cover, while the foreign
exchange market had also stabilised.
He said Austria’s strength in technology and Nigeria’s large
market and population of about 230 million made both countries complementary
investment partners.
Bagudu said he is confident that the partnership can lead to
the growth of, evolution of and stronger growth of business between Nigeria and
Austria.
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