Nigeria’s Eurobond debt faces $1.12bn Eurobond and ₦100bn Sukuk repayments, stressing its finances in 2025.
The government issued the Eurobond in 2018 at 7.625% to fund infrastructure and strengthen reserves.
Investors actively bought the Eurobond despite global uncertainty, showing strong confidence in Nigeria’s borrowing programme.
Nigeria’s Eurobond Debt
Similarly, the government floated the Sukuk at 15.743% to finance key road projects efficiently.
Moreover, the Sukuk demonstrates the government’s strategy to diversify funding using Islamic finance instruments.
Heavy Repayment Pressures
Converted at ₦1,465/$, these maturities create over ₦1.7 trillion, adding significant fiscal pressure on Nigeria.
In the first half of 2025, the government spent ₦5.7 trillion repaying domestic and external debt.
External creditors received $2.32 billion, with IMF and Eurobond holders taking nearly 65% collectively.
Specifically, Nigeria paid the IMF $816.3 million (₦1.195 trillion), showing heavy reliance on its credit facilities.
Meanwhile, Nigeria repaid $687.8 million (₦1.007 trillion) to Eurobond holders, highlighting the high cost of commercial borrowing.
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Cheaper concessional lenders like the World Bank and AfDB received about 20% of total repayments.
Additionally, Nigeria paid Chinese lenders $235.6 million (₦345.15 billion), reflecting a strategic shift away from bilateral loans.
Domestically, the government repaid ₦1.7 trillion between April and June, mostly FGN Bonds and Treasury Bills.
Other instruments, including Sukuk, Green Bonds, and Promissory Notes, absorbed less than ₦95 billion.
Consequently, nearly half of projected revenue went directly to servicing domestic and external debt obligations.
Fiscal Risks And Solutions
Analysts warn that short-term borrowing and rising interest payments increase Nigeria’s refinancing and rollover risks.
Furthermore, currency volatility and sluggish revenue growth further limit funding for infrastructure, healthcare, and education.
Chief Executive Officer of Chatterhouse Limited, Akin Olaniyan compared Nigeria’s fiscal situation to using 70–90% of income repaying loans monthly.
Meanwhile, investor Tajudeen Olayinka noted foreign obligations pose greater risks without improved export earnings.
Finally, experts urge revenue diversification, disciplined borrowing, and private-sector mobilisation to secure fiscal stability.
