Nigeria may issue Chinese Panda bonds to help fund 2016 budget

Nigeria's Finance Minister Kemi Adeosun speaks at a news conference in Lagos, Nigeria, April 9, 2016. REUTERS/Akintunde Akinleye
Nigeria’s Finance Minister Kemi Adeosun speaks at a news conference in Lagos, Nigeria, April 9, 2016. REUTERS/Akintunde Akinleye

Nigeria is considering a sale of Chinese Panda bonds to help fund a record budget aimed at reviving Africa’s biggest economy as it suffers a slump in global oil prices, the finance minister said on Saturday.

The OPEC member, which is Africa’s No. 1 crude producer, could also dip into cash set aside for energy investment projects to help meet the 2016 budget if tax revenue misses targets, Kemi Adeosun said in an interview.

“Initially we were looking simply at the Eurobond market but then we began to explore opportunities in the renminbi market, so there is a possibility of issuing a Panda bond,” she said.

China launched the market for Pandas – yuan-denominated bonds sold by overseas entities on the mainland – in 2005 but only a handful of foreign entities have raised debt there. HSBC (HSBA.L) and Bank of China (Hong Kong) Ltd did so late last year.

Adeosun declined to put a figure on the size of the possible issue, saying only: “We were looking, originally, at doing about a billion dollars on the Eurobond market so may split that between the renminbi and the Eurobond.”

“We’re going to see what the pricing comes out as. At the moment indicative pricing is a bit cheaper – about 1.5 lower than the Eurobond,” she said.

When asked about the timing, Adeosun said: “Our objective was always to be in the market early Q3.” Later, she told a news conference Nigeria may also sell Japanese Samurai bonds.

Adeosun said the government might use money set aside for funding joint-venture investment projects with private oil firms. Nigeria plans to boost tax income by 33 percent in 2016 to offset a slump in oil revenues.

“If the revenue doesn’t come in we have got 1 trillion (naira) in the budget for cash calls,” she said.

Cash calls are the government’s obligations to joint venture projects between state oil firm NNPC and foreign and local oil firms — Nigeria has been late in payments which has undermined plans to boost oil output.

Nigeria has previously asked oil companies for loans when unable to fulfill its obligations on the cash calls.

Nigeria is expected to post budget deficits for the next two to three years, Adeosun said. In 2016, the deficit is seen at 2.2 trillion naira ($11.6 billion), slightly less than a previously stated 3 trillion naira.

President Muhammadu Buhari has not yet signed the 2016 bill into law due to wrangling with parliament.

Uncertainties over President Buhari’s secret alliance with radical Islamic leaders

Guardian News | Houston, TX

Nigerian President Muhammad Buhari 0n, November 23, 2015 met with the Islamic Revolution Leader Ayatollah Khamenei in Tehran, Iran.
Nigerian President Muhammad Buhari November 23, 2015 met with the Islamic Revolution Leader Ayatollah Khamenei in Tehran, Iran.

There are ambiguities over a speculated secret collaboration of Nigeria’s president, Muhammadu Buhari, with unspecified major Muslim leaders to make Nigeria a major Islamist state. International Guardian sources reveal that Buhari’s 2011 and a part of 2014 presidential run were actually sponsored by some radical Muslim leaders who were guaranteed of Buhari’s victory and promised that Nigeria would be delivered to their fraternity in his tenure.

An aide who recently defected from the All Progressive Congress, and who worked directly with some Muslim leaders in Africa and Middle East to negotiate  support of Buhari’s campaign told our newsroom on strict anonymity that he was deceived into such mission, and that he was not briefed properly. “My impression was to raise fund – only to find out later that there were other deals made behind closed doors that I cannot just talk about now.”

It may be recalled that President Muhammadu Buhari’s first practical foreign diplomatic move after his inauguration in April 2015 was  to grant a visa to a fleeing ‘ISIS Emir’, and a Lebanese fugitive, Ahmad al-Assir who was later arrested at the airport. He had changed his appearance by shaving his beards, and was trying to escape to Nigeria through Cairo with fake Palestinian travel document that had a valid visa, according to the Lebanese authorities. His arranged Nigeria’s escape swiftly raised questions about a possible collaboration of Assir with the Nigeria’s new regime.

Furthermore, in November, President  Buhari had visited Iran to attend the Gas Exporting Countries Forum (GECF), but according to the defected aide, it was actually an appreciation visit as well as a brainstorming meeting on how both countries could collaborate on  similar sectarian structures. Guardian gathered that Iran’s former President, Mahmoud Ahmadinejad who left office in 2013 was the one who initiated Buhari’s support in 2011 in a race that claimed hundreds of lives in sectarian violence following Buhari’s loss.

A Nigerian visa was granted to this fleeing ‘ISIS Emir’, and a Lebanese fugitive, Ahmad al-Assir. He was later arrested at the airport.
A Nigerian visa was granted to this fleeing ‘ISIS Emir’, and a Lebanese fugitive, Ahmad al-Assir. He was later arrested at the airport.

Buhari’s romance with Iran unfortunately hit a major snag when he accepted the invitation of the King, Salman Bin-Abdulaziz al-Saud of Saudi Arabia and that of the Ruler of Qatar, Shaikh Tamim Bin Hamad al-Thani, both who allegedly supported his race against Jonathan. He secretly enrolled Nigeria in Saudi’s led coalition of Muslim countries against terrorism, denying such engagement. Months later, he finally admitted joining the partnership in an interview with Aljazeera, claiming “We are part of it because we have got terrorists in Nigeria that everybody knows, which claims that they are Islamic.”

Buhari in Saudi Arabia.... he accepted the invitation of the King, Salman Bin-Abdulaziz al-Saud of Saudi Arabia and that of the Ruler of Qatar, Shaikh Tamim Bin Hamad al-Thani, both who allegedly supported his race against Jonathan.
Buhari in Saudi Arabia…. he accepted the invitation of the King, Salman Bin-Abdulaziz al-Saud of Saudi Arabia and that of the Ruler of Qatar, Shaikh Tamim Bin Hamad al-Thani, both who allegedly supported his race against Jonathan.

Arab countries such as Qatar and the UAE indicated interests in the coalition, as well as Middle Eastern, Asian and African states including Turkey, Pakistan, Malaysia and Nigeria. Saudi Arabia’s regional rival Iran and its allies Syria and Iraq were excluded from the alliance, despite the states sharing a common enemy in the Islamic State of Iraq and the Levant (ISIL) group.

Islamic Revolution Leader Ayatollah Khamenei also lost interest with Buhari after the Nigerian military launched an attack on a Shia Muslim group in one of the country’s northern city, killing numerous members, and brutally arresting the spiritual leader Ibraheem Zakzaky and his wife. Iran quickly issued a strong warning to Nigeria to release Shi’ite cleric and leader of the Islamic Movement of Nigeria (IMN), Sheikh Ibrahim El-Zazaky. Iran was at the time involved in a diplomatic brawl with Saudi Arabia following the execution of another renowned Shia cleric, Sheikh Nimr al-Nimr,

The Nigerian Army Confirms a brutal arrest of this Shia Leader, Sheikh Zakzaky.
The Nigerian Army Confirms a brutal arrest of this Shia Leader, Sheikh Zakzaky.

Our newsroom reliably gathered that some Muslim countries which initially indicated interest in working with president Buhari are now slowing down to weigh options over Buhari’s inconsistency with foreign policy. “I believe they are still weighing his loyalty. He is not focused, and don’t seem to understand what foreign relations is all about. Muslim countries are a different politics, and trust is the key. He doesn’t seem to be trusted,” a former diplomat with the Iranian Ministry of Foreign Affairs said.

arrives mecca
President Muhammadu Buhari prays in Medina in Saudi Arabia.

One of the Muslim countries solidly behind Buhari’s campaign is Morocco. “I know that some representatives from the campaign had a meeting with the regime during election, but I cannot speak on that issue,” an aide had confirmed to the Guardian during then election period in 2015. It may be recalled that the Moroccan monarch, King Mohammed VI rejected a request from the then President Goodluck Jonathan for a telephone conversation, saying it was an “inappropriate” move by the Nigerian leader to curry electoral favor just weeks before a crucial poll. A row thus erupted between both countries and resulted to Morocco’s recall of its ambassador to Nigeria.

After Buhari’s inauguration, however, the Moroccan Ambassador to Nigeria, Mr. Mostafa Bouh met with Buhari assuring that his country was ready for a renewed relationship with Nigeria. “The new relations is for the good of both Morocco and Nigeria. I am here to give the President- elect a message from the King of Morocco. The message is for greetings and best wishes from Moroccan people.”

x Close

Like Us On Facebook