Nigeria is returning to the international debt market, planning to reissue its $1.1 billion Eurobond due this November.
This forms part of a strategy to raise $2.3 billion through Eurobonds by the end of 2025.
Sukuk Launch
On Tuesday, President Bola Tinubu informed lawmakers that the government also plans to issue $500 million in sukuk externally.
This step aims to diversify Nigeria’s funding sources and attract new investors to the international market.
Director-General of the Debt Management Office, Patience Oniha, told Bloomberg market conditions will determine the exact timing of the issuance.
She added, “In terms of what we need, it’s $2.3 billion,” and said bond tenors depend on pricing.
Investor Confidence
Investor interest is growing.
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Nigerian Eurobond yields fell to an average of 7.80% from 9.8% at the start of the year.
At the height of global tariff tensions, yields exceeded 11%, while the premium over US Treasuries fell 300 basis points.
Analysts see an opportunity.
CSL Stockbrokers highlighted strong foreign demand, reflecting confidence in the economy after recent reforms.
They explained, “A well-received issuance could secure favourable pricing and help domestic institutions access international markets soon.”
Previously, Nigeria experienced strong international demand.
Last December, investors oversubscribed the $2.2 billion Eurobond after a two-year market absence.
Looking ahead, Nigeria aims to join Angola and Kenya, which successfully raised $1.75 billion and $1.5 billion respectively.
