Diaspora Bond would pull Nigeria out of recession – Economist

An economist, Mr. Chris Nemedia, on Monday expressed optimism that the potentials in the Diaspora Bond would pull the Nigerian economy out of recession if effectively exploited.

Nemedia, a former Director of the Central Bank of Nigeria (CBN), disclosed this to the News Agency of Nigeria (NAN) in Lagos.

He said utilizing the bond was important given the present economic challenges in the country.

According to him, harnessing the bond could change the economic fortunes of the country given the huge funds available in it.

He noted that although exploiting the potentials of the bond was good, 'it comes with its peculiarities.'

'This bond comes with its own difficulties because after the bond matures, we should be ready to pay back in foreign denomination.

'It is a fact that there is scarcity of foreign exchange and there will continue to be depreciation and at the same time increase in the debt profile of the country.

'It is better to incur debt locally because it will be much easier to control.

'Incurring domestic debt will bring balance in the public debt as other foreign ones have to come with some underlining conditions,' he said.