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 2024 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.
