FG, UK In Talks On Issuance Of ‘Jollof Bonds’ For Infrastructure Financing

The Minister of Finance, Budget and National Planning, Zainab Ahmed, has said Nigeria and the United Kingdom are considering the issuance “Jollof Bonds” for financing of infrastructure in the country.

Ahmed disclosed this on Sundays during a media briefing on the outcome of various bilateral meetings held at the annual meetings of the International Monetary Fund (IMF) and the World Bank in Washington, D.C.

“I am happy to announce the willingness of the UK authorities to support our infrastructure financing through the possible issuance of a Jollof Bond.

“Already a working committee is being set up to interface with Nigeria on this possible naira-denominated bond.

Ahmed explained that the CBN will be a lead to ensure the issuance of the bond adding that all options concerning the debt instrument will be fully explored at the next UK investment summit that will be holding in January 2020.

According to the minister the Jollof Bond is a debt instrument issued offshore but denominated in local currency to support infrastructure development in the country.

“We are contemplating such a bond. There have been proposals made to us, not just by the UK government but also by Deutsche Bank and today also by the World Bank.

“We are looking at that as another instrument to raise financing for the national budget. In the past we have issued Eurobond which have done well, but we are considering this option because it could be cheap and even if it is not, it will be more cost-effective because we are protected from exchange rate differential risk.