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John Kerry to Lead US Delegation to Buhari’s Inauguration

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John Kerry to Lead US Delegation to Buhari’s Inauguration

The United States’ President Barack Obama has named his Secretary of State, Hon John Kerry as the head of the American “Presidential delegation” to the inauguration of Muhammadu Buhari as the president of Nigeria, come May 29, 2015.

It was confirmed last night from a statement from the White House that other members of the US delegation will be announced on a later date.

The United States has been specially particular in its support for the democratic growth in Nigeria.
Meanwhile, Nigeria’s deteriorating fiscal position, may force the incoming Muhammadu Buhari’s administration to tap from the international capital market by issuing Euro-bond.

A rally that drove yields on Nigerian Euro bonds to six-months low has created an opportunity for the president-elect’s government to tap international markets soon after he is sworn in on May 29, Bloomberg reported monday.

Rates on Nigeria’s $500 million of securities due July 2023 fell to 5.45 per cent this month, the lowest since November 4. Yields have dropped by more than 300 basis points since reaching a record high of 7.83 per cent on February 11. Nigerian dollar debt has returned seven per cent this year, compared with the 2.8 per cent average for peers in Africa and the Middle East, according to data compiled by Bloomberg.

While incumbent President Goodluck Jonathan’s administration mostly issued local-currency bonds, a budget deficit that’s widening as low oil prices starve Africa’s biggest crude producer of cash means new sources of funding may be needed.

Lower dollar yields make Euro-bonds more enticing than naira debt, according to an economist at Renaissance Capital, Yvonne Mhango

The West African nation has sold Euro-bonds twice, most recently in July 2013.

Whether Nigeria’s debt rally continues will depend on crude prices and Buhari’s success in carrying out his pledges, including a vow to boost transparency and production in the oil industry, according to a managing director at Los Angeles-based TCW Group Incorporated, Brett Rowley.

Source: Thisday