Nigerian Reps approve $300m Diaspora bond

The House of Representatives has approved President Muhammadu Buhari’s request to increase the Diaspora bond from $100 million Euro bond to $300 million Euro bond as part of Federal Government’s borrowing plan.

The new approved Diaspora Bond was in a recommendation submitted to the House on Tuesday by an ad-hoc committee set up to consider the President’s request.

The approval was given during consideration of report of the Ibrahim Babangida-led ad hoc Committee mandated to work on the presidential request at the Committee of the Whole House on Tuesday.

According to the report, the Diaspora bond which was captured in federal government’s external borrowing plan 2016-2018, was aimed at diversifying government sources of funding and taking advantage of Nigeria large Diaspora population.

The increase of the diaspora bond from $100 million euro bond to $300 million Euro bond is part ot the request was made by President Muhammad Buhari, as part of the Federal Government’s external borrowing plan for the 2016-2018 period.

Addressing reporters on the development, the Deputy Speaker of the House of Representatives, Honourable Yusuf Lasan, said that the Diaspora Fund was expected to reduce the cost of government borrowing.

He said that the proceeds of the issuance would be used to finance capital projects in priority sectors of the economy such as roads, railways and power projects among others.