Domestic Bond Market and International Financing in Nigeria
Abstract
This article examined the pivotal function of Nigeria's local bond market in improving foreign funding opportunities. Africa's largest economy faces various challenges concerning external debt and economic stability; the paper asserts that a strong domestic bond market can substantially diminish dependence on foreign debt, alleviate currency risk, and facilitate long-term financing for essential infrastructure projects. It underscores the many advantages of a robust domestic bond market, including enhanced government accountability, institutional advancement, and increased financial inclusion. The study highlights many constraints obstructing the expansion of the domestic bond market and presents practical solutions, including the enhancement of regulatory frameworks, the promotion of investor education, and the diversification of financial products. By concentrating on these sectors, Nigeria may establish itself as an appealing locale for both domestic and foreign investors, eventually fostering more sustainable economic development and enhanced access to global capital markets. This research highlights the need of cultivating a robust domestic bond market as an integral component of a holistic approach to enhance Nigeria's economic resilience and developmental results.
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References
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