Nigeria is planning to raise up to $2.3 billion through a Eurobond issuance in the fourth quarter of 2025 as the government moves to take advantage of improved market conditions and lower borrowing costs.
The planned sale will mark the country’s return to the international debt market after nearly a year following a similar issuance in December that raised $2.2 billion with strong investor demand.
President Bola Ahmed Tinubu formally requested approval from the House of Representatives to secure the funds through foreign borrowing before year-end, alongside an additional $500 million sukuk that will be issued externally for the first time.
The President also sought legislative consent to refinance $1.1 billion in dollar-denominated debt maturing in November 2025, according to a letter presented to lawmakers on Tuesday.
Confirming the plan, Patience Oniha, Director-General of the Debt Management Office (DMO), said Nigeria intends to issue the Eurobonds subject to market conditions, noting that the final tenor will depend on pricing and investor appetite.
“In terms of what we need, it’s $2.3 billion,” Oniha said in a message to reporters on Wednesday.
The move comes as African sovereigns return to the Eurobond market amid declining yields on frontier-market debt. Countries such as Angola and Kenya have recently concluded multi-billion-dollar sales, benefiting from renewed investor confidence and easing global monetary conditions.
The yield premium on Nigerian bonds over U.S. Treasuries has fallen by 300 basis points since April, reaching its lowest level in seven years, according to Bloomberg data.
The planned Eurobond will help Nigeria finance part of its 2025 fiscal deficit while also supporting the country’s foreign exchange reserves.
The external sukuk issuance, meanwhile, represents an important diversification of the government’s borrowing instruments and is expected to attract liquidity from Islamic investors in the Middle East and Asia.
Nigeria’s last Eurobond sale in December 2024 drew strong investor interest, with bids exceeding four times the $2.2 billion offered. Market analysts believe a similar outcome is likely this year, given improved macroeconomic fundamentals and recent policy reforms.
Since assuming office in 2023, President Tinubu has implemented a series of fiscal and monetary reforms aimed at restoring market confidence and strengthening the economy. These include the removal of fuel subsidies, unification of the foreign exchange market, and the adoption of a more orthodox monetary policy framework to stabilize the naira.
The government has also improved crude oil production by addressing security challenges in the Niger Delta, boosting the nation’s capacity to meet fiscal targets.
Nigeria’s return to the Eurobond market underscores growing confidence in its economic management and debt sustainability strategy.
The DMO has maintained that external borrowing remains an essential component of the country’s funding mix, helping to lengthen maturities and reduce refinancing risks associated with domestic debt.
If successful, the Eurobond issuance will strengthen Nigeria’s position among African peers actively re-engaging with international capital markets.
It will also reflect the positive sentiment that has emerged following Tinubu’s reform-driven policies, which have increased foreign investor participation in Nigerian assets and lowered the country’s risk premium.