Buhari makes request to House for increase in Diaspora Bond to $300 million from $100 million

President Muhamadu Buhari has requested the Federal House of Representatives to approve the increase from $100 million to $300 million of the Diaspora Bond to be sourced from the International Capital market. He justified this saying “The huge amount of capital needed to abridge the infrastructural gap thereby supporting growth and development; the need to optimise the cost of issuance relative to the amount proposed to be raised, since the  some costs, such as marketing expenses, fees to some transaction parties and the preparation of a prospectus will be the same, regardless of the amount issued; and the high interest being shown by the  Nigerian Diaspora in the proposed bond.”


He further explained the rationale that the Debt Management Office (DMO)  and Securities and Exchange Commission (SEC) laws required the resolution of both houses to do this. The senate has already passed it during the days of the last senate,but the House still has to do it's part.

The letter addressed to Speaker Yakubu Dogara further reads: “The Honourable Speaker may wish to recall that the Federal Government in its efforts to mobilise capital to finance critical infrastructure while diversifying its funding sources and encouraging the Nigerian Diaspora to contribute to the development  of the economy through investment in Capital Projects in priority sectors of the economy, sought and obtained the approval of the National Assembly (NASS) in March, 2013 to issue a $100 million Diaspora Bond to Nigerians in Diaspora.
“In furtherance of this development and in conformity with the law, the former president approved and submitted a request to the two chambers of the NASS in December 2013 for an increase in the issuance amount from $100 million to $300 million.”