Africa’s largest oil producer may raise as much as $1 billion in external borrowing in 2024 to meet its spending needs, they said.
Nigeria has hired investment banks including Citigroup Inc., JPMorgan Chase & Co. and Goldman Sachs Group Inc. to advise it on the West African nation’s first eurobond issue since 2022, according to people familiar with the deal.
Bloomberg reported on Thursday that the size of the eurobond offer, which was expected before June, had yet to be determined. This is according to the people who asked not to be identified because they’re not authorized to comment publicly on the matter.
Africa’s largest oil producer may raise as much as $1 billion in external borrowing in 2024 to meet its spending needs, they said.
The report also said Nigeria had hired Standard Chartered Bank and Lagos-based Chapel Hill Denham as advisers.
Wale Edun, Nigeria's Minister of Finance and Coordinating Minister of the Economy, is the founder of Chapel Hill Denham Group, an investment banking, securities trading, and investment management firm.
On its website, the firm says it provides comprehensive advisory services to a diverse client base, including financial institutions, multinationals, and governments.
In June 2023, the Global Energy Alliance for People and Planet (GEAPP) in collaboration with Chapel Hill Denham established a new local currency subordinated debt vehicle: the Energy Transition & Access Facility for Africa (ETAFA).
ETAFA is an innovative financing initiative, which will enable the deployment of US$50M to support distributed renewable energy (DRE) projects in Nigeria.
Earlier this year, President Tinubu signed a N28.7 trillion budget for 2024 fiscal year, with a deficit of N9.8 trillion.
This will require financing through borrowings to fund the budget. The 2024 budget is 26% larger than the 2023 budget presented by former President Muhammadu Buhari.