By Afolayan Sunday
In a strategic push to fast-track its ambition of building a $1 trillion economy by 2030, the Federal Government has announced plans to issue a specialized bond on the Vienna Stock Exchange.
The announcement was made by the Minister of Budget and Economic Planning, Senator Abubakar Bagudu, during the GPF Global Vienna Meeting held in Vienna, Austria. The initiative is designed to bridge European capital markets with high-impact sectors in Nigeria, offering a secure pipeline for foreign direct investment.
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, pharmaceuticals, 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, evolution, and stronger growth of business between Nigeria and Austria.
