Senate approves $300m Diaspora Bond For President Jonathan

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Senate on Tuesday at plenary approved the request of President Goodluck Jonathan to raise an initial $100 million through the Diaspora Bond to fund key priority projects across the country.
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However, the Upper Chamber increased the bond to $300 million sequel to the report submitted by its Joint Committee on Local and Foreign Debts and Finance.

According to the Committee, the proceed will be used to construct key capital projects in priority sectors of the economy like Lagos-Ibadan expressway, Second Niger Bridge and the infrastructure of Abuja medical center.
Prompt News recalls that the President had requested the senate for an increase in the amount to be raised through the Diaspora bond from the International capital markets.

He stated that the proposed increase in the Diaspora bond is to fund critical infrastructures in the country and it will accommodate a greater number of Nigerians in the Diaspora who have interest to invest in the development of the country.

The chairman of the joint committee on local and foreign debts and finance, Ehigie Uzamere (Edo South) while presenting the report noted that the larger and present amount of $300m is consistent with the public debt management strategy.

“The Federal government plans to utilize the proceeds of the Diaspora bond in the construction of key capital projects in the priority sectors of the economy like the second Niger Bridge, Lagos -Ibadan expressway and infrastructure for the Abuja medical city‎’

“The concept of raising funds through Diaspora bond has been employed by several countries over the years with tremendous success and the issuance of the bond will‎ afford the Diaspora the opportunity to invest in the development of the country while earning good returns for their investment ”

“The committee believes the project that the federal government has chosen to utilize the funds are critical infrastructures that will impact on the economy positively,” he submitted.

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