Nigeria has raised $2.35 billion from the international bond market
after its latest Eurobond issue attracted a record $13 billion in orders
from global investors, the Debt Management Office (DMO) said on
Wednesday.
The sale, Nigeria’s first major outing in the Eurobond market since
2021, marks a significant vote of confidence in the country’s ongoing
economic reforms. The bonds were issued in two tranches — a 10-year,
$1.25 billion note due in 2036 with a coupon rate of 8.63 percent, and a
20-year, $1.1 billion note due in 2046 with a 9.13 percent coupon.
Investor Demand Surpasses Expectations
According to the DMO, the order book peaked at over $13 billion, more
than four times the expected size of the issuance. The strong demand
came from a wide range of institutional investors, including global
asset managers, insurance firms, and sovereign wealth funds.
“The reforms on foreign exchange unification, subsidy removal, and
fiscal transparency have started restoring market confidence,” said a
Lagos-based investment adviser, noting that “the scale of participation
shows investors are re-engaging with Nigeria’s story.”
Why It Matters
The proceeds are expected to support Nigeria’s 2025 budget and help
strengthen its external reserves. The funds will also ease pressure on
the domestic market, where government borrowing costs have been high due
to tight liquidity.
Economists, however, warn that the new borrowing increases Nigeria’s
external debt exposure and must be managed prudently. They urge the
government to channel the funds into capital projects that can stimulate
productivity and create jobs.
Debt Sustainability Concerns
Nigeria’s total public debt stood at ₦97.3 trillion as of June 2025,
according to DMO figures, with external debt accounting for over 40
percent. The country’s rising debt profile has drawn concern from
economists and rating agencies, who stress the need for improved revenue
generation.
The federal government maintains that its debt remains sustainable,
pointing to reforms aimed at improving tax compliance and broadening the
revenue base.
Broader Economic Context
The successful Eurobond sale comes at a time when emerging-market debt
issuers are facing tighter global credit conditions. Nigeria’s ability
to attract record demand despite higher global interest rates signals
that international investors are responding positively to recent fiscal
and monetary adjustments.
President Bola Ahmed Tinubu’s administration has prioritised restoring
market confidence through reforms in the energy, forex, and public
finance sectors. The government has also pledged to ensure transparency
in the use of the Eurobond proceeds.
Bottom Line
Nigeria’s record-breaking Eurobond sale offers short-term fiscal relief
and a boost to investor sentiment. But experts say the true measure of
success will depend on how effectively the funds are deployed to drive
growth and reduce economic vulnerabilities.
As global attention returns to Nigeria’s capital market, the government
faces a crucial test — turning investor optimism into sustainable
economic progress.
Nigeria’s Eurobond Sale Draws Record $13bn in Orders as Global Investors Show Confidence
