Nigeria has made a historic comeback to the international debt market, successfully raising $2.35 billion through Eurobonds after receiving a record $13 billion in investor orders, the highest in its history.
The Debt Management Office (DMO) described the transaction as a landmark moment that reflects global investor confidence in Nigeria’s ongoing economic reforms and fiscal discipline.
Despite heightened geopolitical tensions and the U.S. threat of military action over alleged Christian genocide, investors showed strong appetite for Nigerian debt.
The issuance was oversubscribed by 477%, underlining robust global interest in the nation’s credit outlook.
Details of the Eurobond Issuance
The DMO said Nigeria priced $2.35 billion across two tranches, a $1.25 billion 10-year note due in 2036 and a $1.10 billion 20-year note due in 2046. The bonds were priced at yields of 8.6308% and 9.1297%, respectively, reflecting strong demand despite a volatile global rate environment.
“The transaction attracted a peak orderbook of over $13 billion, marking the largest ever orderbook achieved by the Republic,” the DMO stated. The agency said investor demand was “a strong expression of support across geography and investor class,” with participation from fund managers, pension funds, hedge funds, banks, and insurance companies.
Broad Global and Domestic Investor Participation
The DMO highlighted that interest came from a diverse investor base spanning the United Kingdom, North America, Europe, Asia, and the Middle East. Nigerian investors also participated, signaling domestic faith in the country’s fiscal direction.
“This broad participation represents continued investor confidence in Nigeria’s sound macro-economic policy framework and prudent fiscal and monetary management,” the agency noted.
The bonds will be listed on the London Stock Exchange, the FMDQ Securities Exchange, and the Nigerian Exchange Limited (NGX), enhancing visibility and tradability across markets.
Financing Fiscal Deficit and Development Goals
According to the DMO, proceeds from the issuance will help finance the 2025 fiscal deficit and other government funding needs. Nigeria mandated Chapel Hill Denham, Citigroup, Goldman Sachs, J.P. Morgan, and Standard Chartered Bank as joint bookrunners, while FSDH Merchant Bank Limited served as the financial adviser.
The deal aligns with Nigeria’s broader debt management strategy of balancing domestic and external borrowing to fund growth while maintaining debt sustainability.
Tinubu’s Administration Hails Market Confidence
President Bola Ahmed Tinubu lauded the success, saying it reflects “strong investor confidence demonstrated in our country and our reform agenda.” He described the achievement as reaffirming Nigeria’s “position as a recognised and credible participant in the global capital market.”
Finance Minister Wale Edun said the robust response signals the international community’s continued belief in Nigeria’s reform trajectory and inclusive growth strategy.
DMO Director-General Patience Oniha added that the transaction supports Tinubu’s growth agenda and advances the agency’s mission to diversify funding sources for national development.
From Market Pressure to Investor Confidence
Just weeks earlier, Nigeria’s Eurobonds had come under renewed pressure as global investors reacted cautiously to the nation’s fiscal outlook and rising global interest rates. Longer-dated issues, such as the 7.625% November 2047 and 8.25% September 2051 notes, saw price declines before stabilizing in late October.
The successful November issuance marks a turnaround in investor sentiment, signaling that reforms aimed at improving fiscal management, stabilizing the naira, and curbing inflation are resonating with the market.
Outlook
Nigeria’s record-setting Eurobond issuance underscores its resilience and ability to attract international capital amid challenging global conditions. The overwhelming demand shows that investors remain confident in the country’s long-term economic prospects and reform agenda, even as external risks persist.
