Nigeria to start international borrowing in Q3 – finance minister – Reuters

ABUJA, July 21 (Reuters) – Nigeria will start borrowing abroad in the third quarter, Finance Minister Kemi Adeosun said on Thursday, in the wake of the central bank’s decision to float the naira last month.

The government has said it plans to borrow up to $10 billion, with about half of that coming from foreign sources, to help make up a budget shortfall exacerbated by a slump in oil prices.

The oil producer had initially planned to hold Eurobonds road shows in March but postponed sales as investors complained about the overvalued naira, according to bankers.

In June, the central bank floated the naira.

On Thursday, the currency hit a record low of 330.50 in off-market transactions, after just one trade was made during regular interbank hours at a rate of 309 naira to the dollar.

“We have been borrowing largely from the domestic market because we needed to get the exchange rate sorted out to enable us to borrow from the international market. The international borrowings will begin to come in Q3,” Adeosun told reporters.