Jamiu Agah, a Lagos-based IT consultant, is one of many Nigerians excited about the Federal Government’s new domestic dollar bond.
The bond, which requires a minimum investment of $10,000, offers a 9.75% return, making it an attractive alternative to the $200,000 minimum required for Nigerian Eurobonds.
Jamiu, who earns $50,000 annually, can now invest his $45,000 savings without waiting years to meet the Eurobond threshold.
The $2 billion domestic dollar bond program, launched with a 9.75% coupon rate, has gained significant interest from Nigerians at home and abroad, who see it as a stable investment with better returns than the 9.58% yield on a comparable Eurobond.
The bond is open to Nigerians living both locally and abroad, as well as foreign and institutional investors.
The success of this bond highlights the growing interest in dollar-denominated assets among Nigerians, driven by the need to protect against the volatility of the naira.
Analysts believe this bond is an excellent investment opportunity, offering higher returns than those available in many other countries.
(Business Day)