In a development that demonstrates their strong belief in the Nigerian economy, international investors have exceeded the expectations of analysts in their response to the recently floated $1 billion Nigerian bond.

“The positive response to the bond which has been oversubscribed four times is anchored on a strong perception that the fundamentals of the Nigerian economy remain strong despite some recent challenges,” says Paul C Nwabuikwu, Special Adviser to Nigeria’s Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala.

According to Nwabuikwu, “This positive reaction is an improvement on investor response to the first bond floated in January, 2011. It is especially significant coming at a time of increasing turbulence and uncertainty in the global market which has witnessed an exodus of investors from other emerging markets. Proceeds from the bond will finance key power infrastructure in various parts of the country.”

Reacting to the development, Coordinating Minister for the Economy and Minister of Finance, Dr. Okonjo-Iweala said:

“This is very good news for the country. It shows that the international investors are confident that the Nigerian economy is being well managed and that the future of the Nigerian economy remains bright.

“Investors are not sentimental people. They vote with their pocket. So if they are responding this way, then it is really significant.”

Continuing, Okonjo-Iweala told newsmen during a media briefing today in her Abuja office: “At a challenging time for the global economy like this when investors are running away from other emerging markets, this is a source of encouragement and a vindication for the manner the economy has been managed by the administration of President Goodluck Jonathan.”

Also reacting, the Director-General of the Debt management Office, Dr. Abraham Nwankwo, described the bond as a testament to sound economic management and hard work by the federal government.

•Photo shows Okonjo-Iweala.

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