The Debt Management Office said the National Assembly approved the Diaspora Bond, which was used to borrow $300m from Nigerians in the diaspora.
In a statement made available to Journalists in Abuja on Sunday, the DMO said the $300m Diaspora Bond was approved by the National Assembly via its resolution dated April 28, 2016.
The issuance of the $300m was done on June 26, 2017 and the proceeds were used to finance part of the deficit in the 2017 Appropriation Act.
According to the DMO, the $300m Diaspora Bond was not part of the $5.5bn approved by the National Assembly on November 14, 2017.
The DMO said, “Out of the $5.5bn approved by the National Assembly on November 14, 2017, $3bn Eurobonds was issued on November 28, 2017, leaving a balance of $2.5bn to be issued.”
It further explained that $2.5bn out of the $3bn Eurobonds issued in November 28, 2017 was used to fund 2017 budget deficit, while the balance of $500m was used to redeem matured Nigerian Treasury Bills in December 2017.
The DMO said that it part-funded the 2017 budget deficit with the proceeds of $300m Diaspora Bond and proceeds of $2.5bn Eurobonds, adding that the office would not borrow without first obtaining the required approvals.