The naira saw its largest increase in nearly two months, rising 4.8 percent against the US dollar, following the sale of Nigeria’s first domestic dollar bond.

This marked the biggest jump since July 22.

The currency closed at 1,558 naira per dollar on Wednesday, its strongest level against the greenback since August 21, Bloomberg reports.

“Nigeria’s naira gained the most in almost two months after the West African nation announced that its debut domestic dollar-bond issue attracted significant demand.

“The unit surged 4.8% against the dollar on Wednesday, the biggest increase since July 22, according to data compiled by Bloomberg. The currency closed at 1,558 naira per dollar, its strongest level against the greenback since Aug. 21.”

The appreciation in the naira came after Nigeria’s first-ever foreign-currency domestic bond secured $900m in subscriptions.

PUNCH Online reports that the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, stated that the $500m domestic FGN US Dollar Bond, which has a five-year maturity and a 9.75 per cent coupon, is the first tranche of a $2bn bond programme registered with the Securities and Exchange Commission.

The bond’s structure allows the government to absorb oversubscriptions up to the full $2bn programme limit.

He further explained that proceeds from the bond will be directed towards critical sectors of the economy, as approved by President Bola Ahmed Tinubu.

The debut bond issuance attracted a broad spectrum of investors, including both local and diaspora Nigerians, as well as institutional investors.

The minister described the bond’s success as a key milestone in Nigeria’s efforts to promote financial inclusion and deepen economic growth.

Bloomberg noted that the bond sale played a significant role in boosting investor sentiment, contributing to the naira’s recent strength against the dollar.