Citing rising oil prices and what they describe as “increasing likelihood of a successful Eurobond issuance” by Nigeria, analysts at CardinalStone Research have advised the Federal Government not to fully drawdown on the anticipated $3.4 billion Special Drawing Rights (SDRs) from the International Monetary Fund (IMF).
As part of further measures to enable member countries cope with the lingering Covid-19 crisis, the IMF last week approved $650 billion in Special Drawing Rights (SDR), out of which Nigeria is expected to be allocated c.$3.4 billion based on its quota contribution and economic standing.
The announcement was greeted with excitement by stakeholders, who argued that the $3.4billion would help the Central Bank of Nigeria (CBN) support the naira.
However, in their reaction, the CardinalStone Research analysts stated: “The Debt Management Office (DMO) announced the appointment of transaction advisers for the issuance of Eurobonds as part of the new external borrowing of $6.2 billion provided in the 2021 Appropriation Act.
“This disclosure follows the recent news of the IMF’s approval of $650 billion in Special Drawing Rights (SDR). From this, Nigeria is expected to be allocated c.$3.4 billion based on its quota contribution and economic standing