Nigeria’s naira, steadily recovering, could strengthen further as the government plans a $2.3 billion Eurobond.
Consequently, the move should boost external reserves, improve FX liquidity, and reassure investors.
Naira Strengthens Eurobond
Year-to-date, the naira has gained 4.5%, trading at ₦1,475.35 per dollar on October 17.
Reserves On The Rise
Meanwhile, external reserves have risen by $1.8 billion, reaching $42.68 billion from $40.88 billion at year start.
CBN Deputy Governor Mohammed Sani Abdullahi said the government will use part of the Eurobond to refinance a $1.18 billion bond.
Furthermore, the issuance will strengthen reserves, support investor confidence, and ease short-term fiscal pressures.
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Analysts explain that the inflow will improve FX liquidity and help the Central Bank stabilise the naira.
Debt Risks Loom
Additionally, Head of Research at Parthian Securities, Adebowale Funmi pointed out that it finances part of the 2025 budget, reducing domestic borrowing needs.
However, she warns that the Eurobond increases Nigeria’s external debt, exposing the country to exchange rate and debt risks.
Finally, Abdullahi stated that the government will engage investors to ensure fair pricing and effective liability management.
