Month: November 2025

In a resounding return to the global debt markets, Nigeria has successfully raised $2.35 billion through a dual-tranche Eurobond issuance that drew unprecedented investor demand exceeding $13 billion — the largest orderbook ever recorded in the country’s history.

The historic issuance marks Nigeria’s first outing to the international bond market in two years and is widely seen as a strong vote of confidence in the nation’s ongoing economic reforms and fiscal stabilization agenda under President Bola Ahmed Tinubu.

According to a statement issued by the Debt Management Office (DMO) on Wednesday, the transaction underscores investors’ renewed faith in Nigeria’s macroeconomic policies, prudent fiscal management, and long-term growth outlook despite global market volatility and geopolitical risks.

Record-Breaking Demand Despite Global Headwinds

The DMO described the Eurobond sale as a “landmark success” for Africa’s largest economy, noting that the transaction was oversubscribed by nearly 477 percent. The overwhelming participation came amid global uncertainty, including tensions in the Middle East and recent U.S. political statements suggesting potential military action in West Africa.

Despite these challenges, investors across continents demonstrated strong appetite for Nigerian sovereign debt, viewing the country’s fiscal reforms, exchange rate unification, and subsidy removal as credible steps toward restoring economic stability.

“The transaction attracted a peak orderbook of over $13 billion, marking the largest ever achieved by the Republic,” the DMO said.
“This underscores the robust support for Nigeria’s credit story across geography and investor class.”

Details of the Eurobond Offer

Nigeria’s $2.35 billion Eurobond was issued in two tranches — a $1.25 billion long 10-year note due 2036, and a $1.10 billion long 20-year note due 2046.

The 10-year tranche was priced at a yield of 8.63 percent, while the 20-year note was priced at 9.13 percent, reflecting investor willingness to extend duration despite global interest rate pressures.

According to the DMO, the transaction saw broad-based participation from global asset managers, pension and insurance funds, hedge funds, banks, and other institutional investors. Regional demand was also diverse, with strong orders coming from the United Kingdom, North America, Europe, Asia, and the Middle East, alongside meaningful participation from Nigerian investors.

“The broad investor participation is an expression of sustained confidence in Nigeria’s sound macroeconomic framework, prudent fiscal strategy, and reform momentum,” the DMO added.

The agency confirmed that the newly issued notes will be listed on the London Stock Exchange (LSE), the FMDQ Securities Exchange Limited, and the Nigerian Exchange Limited (NGX), providing global visibility and secondary market liquidity.

Use of Proceeds and Strategic Advisors

Proceeds from the Eurobond issuance will be used to finance Nigeria’s 2025 fiscal deficit and support broader government financing needs, including infrastructure development, social spending, and economic stabilization initiatives.

To structure and execute the deal, Nigeria appointed a consortium of leading global financial institutions — Chapel Hill Denham, Citigroup, Goldman Sachs, J.P. Morgan, and Standard Chartered Bank — as Joint Bookrunners. FSDH Merchant Bank Limited acted as the Financial Adviser.

The selection of top-tier advisers underscores the government’s intention to ensure transparency, competitive pricing, and credibility in accessing global capital markets.

Official Reactions: Tinubu, Edun, Oniha Speak

President Bola Ahmed Tinubu described the successful issuance as a clear signal of investor confidence in Nigeria’s reform trajectory and economic management.

“This development reaffirms Nigeria’s position as a recognized and credible participant in the global capital market,” Tinubu said.
“It is a testament to the belief in our government’s vision for fiscal discipline, market stability, and inclusive growth.”

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the strong global response reflects recognition of Nigeria’s efforts to strengthen its fiscal base, stabilize the naira, and attract sustainable investment.

“Our successful market access after two years demonstrates the international community’s trust in Nigeria’s reform agenda and its commitment to macroeconomic recovery,” Edun stated.

Patience Oniha, the Director-General of the DMO, noted that the return to the Eurobond market is part of a broader strategy to diversify funding sources while supporting national development priorities.

“This transaction represents a major milestone for Nigeria. It aligns with our objective to secure long-term financing to support the federal government’s growth and infrastructure agenda,” she said.

Context and Market Implications

Nigeria’s return to the Eurobond market follows a period of global tightening in capital flows and heightened investor caution toward emerging markets. The country last issued Eurobonds in 2022, and its decision to re-engage with international investors comes amid renewed fiscal consolidation and monetary policy coordination under the Tinubu administration.

The issuance also follows earlier disclosures by Sanyade Okoli, Special Adviser to the President on Finance and the Economy, who had in mid-October announced plans for a $2.3 billion Eurobond as part of Nigeria’s refinancing and debt management strategy.

Recent reports indicated that Nigeria’s longer-dated Eurobonds, particularly the 7.625% November 2047 and 8.25% September 2051 notes, had faced price pressure earlier in October due to rising U.S. yields and global risk aversion. The new issuance — backed by strong demand — is therefore viewed by analysts as a turning point in rebuilding Nigeria’s credit perception and restoring access to competitive financing.

Conclusion

Nigeria’s $2.35 billion Eurobond success, backed by record investor demand, signals a resounding endorsement of its ongoing reforms and economic management strategy. It also highlights the country’s re-emergence as a credible and attractive borrower in the international capital markets.

As proceeds are deployed to finance key development priorities, the issuance not only strengthens Nigeria’s fiscal resilience but also reinforces global confidence in its long-term growth trajectory — proving that disciplined reform and market credibility can once again make Nigeria a top destination for global capital.

Nigeria’s non-interest capital market has achieved a significant milestone, expanding to a valuation exceeding N1.6 trillion, according to the Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama.

Speaking at the 7th African International Conference on Islamic Finance (AICIF 2025) held in Lagos, Dr. Agama described the surge as a “remarkable validation of investor confidence, regulatory innovation, and the growing appetite for ethical finance in Africa’s largest economy.”

He emphasized that the non-interest segment — anchored on Islamic finance principles — has become a vital pillar of Nigeria’s broader financial inclusion strategy and a key vehicle for mobilizing long-term funds for critical infrastructure projects.

Ethical Finance Driving Infrastructure Development

Dr. Agama credited the rapid growth of the non-interest market to deliberate policy actions and reforms under the Investments and Securities Act (ISA) 2025, which provides a robust framework for ethical and Shariah-compliant investments.

“The remarkable growth of this segment, now valued at over N1.6 trillion, shows that when the regulatory environment is right, markets respond with innovation and resilience,” Agama stated.

A cornerstone of this expansion, he noted, is Nigeria’s sovereign Sukuk programme, which has raised more than N1.4 trillion across seven issuances since 2017. Proceeds from these Sukuk have funded 124 key road projects spanning approximately 5,820 kilometres across the country.

In a major development, the SEC boss disclosed that the federal government has approved plans for a $500 million international Sukuk issuance, marking Nigeria’s next phase of engagement with the global Islamic finance community. The offering is expected to attract foreign ethical investors and deepen Nigeria’s participation in the rapidly expanding international Sukuk market.

Africa’s Rising Embrace of Non-Interest Finance

Dr. Agama also highlighted the growing momentum of Islamic finance across Africa, citing examples from Egypt, Kenya, Tanzania, Senegal, and Ghana, where regulators are strengthening frameworks to attract Shariah-compliant investments.

He said the expansion reflects Africa’s readiness to integrate non-interest financial instruments into mainstream financial systems and use them as catalysts for sustainable development.

Agama commended the organizers of AICIF, Metropolitan Skills, for sustaining an influential platform that shapes the discourse around ethical finance and financial inclusion. He added that insights from the 2025 conference would feed into the Second Nigerian Capital Market Masterplan (2026–2035), which is set to guide the next decade of market reforms following the conclusion of the first plan this year.

“Our vision is clear,” Agama declared. “Ethical finance is not just about compliance with Shariah principles — it is about fairness, transparency, and shared prosperity. Prosperity without inclusion is not sustainable.”

Bridging Africa’s Infrastructure Gap

In her keynote remarks, Ms. Ummahani Ahmad Amin, Chair of the AICIF, commended Nigeria’s progress but cautioned that Africa still lags in leveraging Islamic finance as a sustainable source of capital.

She noted that while global Islamic financial assets expanded by 14.9% to reach $3.88 trillion in 2024, the continent’s contribution remains modest due to structural barriers such as low market depth, weak liquidity, and limited investor education.

“Islamic finance has proven its resilience globally, but Africa must now convert potential into performance,” Amin said. “To make Sukuk and other non-interest instruments effective in bridging our infrastructure deficit — estimated between $130 billion and $170 billion annually — we must strengthen local ecosystems and awareness.”

She also stressed the importance of technology and innovation, noting that Artificial Intelligence (AI) is reshaping the ethical finance landscape through automated compliance, data-driven transparency, and enhanced market accessibility. However, she warned that without strong ethical safeguards, technology could undermine the very trust that underpins Islamic finance.

Innovation, Inclusion, and the Next Generation

A notable feature of this year’s conference was a startup pitch competition co-hosted by the SEC, designed to encourage youth-driven innovation in ethical finance. ZannyTecture Recycling Company Limited won the Social Impact category for its sustainable recycling solutions, while BetaLife Health clinched the Technology Innovation award for its AI-powered platform that optimizes blood supply chains in healthcare.

In closing, Amin announced the launch of The Metropolitan Waqf, a charitable endowment aimed at expanding access to education for underserved communities, especially in Nigeria’s conflict-affected regions.

The event’s overarching message was clear: Nigeria’s non-interest capital market is not just growing — it is transforming into a vehicle for inclusive, transparent, and sustainable economic development, positioning the country as a regional leader in ethical finance.

Nigeria is set to re-enter the international debt market this week with plans to issue $2.3 billion in Eurobonds, its first major foreign borrowing in nearly a year. The move comes at a delicate time, as global investors assess geopolitical tensions following U.S. President Donald Trump’s recent threat of military action against Islamist militants in Nigeria — comments that briefly rattled investor confidence and caused a short-term dip in Nigerian assets.

According to a Bloomberg report citing individuals familiar with the process, the Nigerian government intends to issue 10-year Eurobond notes, alongside either 15- or 30-year securities, depending on final approval from the Federal Ministry of Justice. The issuance marks a significant step in Nigeria’s return to international capital markets after a cautious period of fiscal consolidation and domestic borrowing.

Despite the geopolitical noise, Nigeria’s decision signals confidence in global appetite for emerging-market debt, especially as investors seek higher yields amid expectations that the U.S. Federal Reserve may begin cutting interest rates in the coming quarters.

Tapping Global Capital Markets

Nigeria’s Eurobond plan aligns with a broader wave of African sovereigns returning to the international bond market in 2025. Kenya and Angola have already raised funds this year, taking advantage of improved global sentiment toward frontier economies and a narrowing of African debt spreads.

According to JPMorgan Chase & Co., the average spread on African sovereign bonds over U.S. Treasuries has tightened to about 367 basis points, roughly half of what it was in April — an indication that investors are regaining confidence in African debt markets.

If successfully executed, the sale would be Nigeria’s first international bond issuance since December 2024, when the government raised $2.2 billion. The upcoming issuance, expected to close within days, had initially been delayed after Trump’s comments accusing Nigeria of religious persecution and threatening to withdraw U.S. aid.

The remarks triggered a temporary selloff in Nigerian bonds and currency markets, but President Bola Ahmed Tinubu quickly moved to reassure investors, rejecting Trump’s claims and reaffirming Nigeria’s commitment to religious freedom.

“Nigeria is a secular nation with constitutional guarantees for all faiths,” Tinubu posted on X (formerly Twitter). “Our democracy stands firm on equality, tolerance, and justice.”

The Eurobond Managers and Structure

The federal government has appointed a consortium of top investment banks as joint lead managers for the transaction. These include Chapel Hill Denham, JPMorgan Chase & Co., Standard Chartered Plc, Citigroup Inc., and Goldman Sachs Group Inc., while FSDH Merchant Bank Ltd. serves as the financial adviser.

The deal structure will likely include tranches of different maturities to attract a broad range of investors — from pension funds and insurance companies to sovereign wealth funds. According to market analysts, strong participation is expected given Nigeria’s improving fiscal fundamentals and reforms under the Tinubu administration.

Nigeria’s National Assembly had already approved plans to raise $2.3 billion in foreign debt before year-end, in addition to a $500 million sukuk issuance, signaling legislative alignment with the government’s financing strategy.

Globally, emerging-market governments have raised over $245 billion in dollar- and euro-denominated bonds this year — the highest issuance volume since 2014, according to Bloomberg data.

Meanwhile, Nigeria’s existing 2051 Eurobond fell slightly by about one cent to 91.05 cents on the dollar in recent days, pushing yields up to 9.14%, though still far below the 12.11% peak recorded in April.

Reform Momentum and Investor Confidence

Since assuming office in May 2023, President Tinubu’s administration has pursued a string of market-oriented reforms designed to restore macroeconomic stability and rebuild investor confidence. These include the removal of fuel subsidies, tax system restructuring, and the liberalization of the naira exchange rate.

These measures, though initially painful for consumers, have been lauded by international institutions and credit rating agencies. In a notable show of confidence, Moody’s Ratings upgraded Nigeria’s sovereign credit rating from Caa1 to B3, citing “significant improvements in external balances, fiscal management, and reform implementation.”

The upgrade placed Nigeria back on the radar of global institutional investors, many of whom had reduced exposure during years of policy uncertainty.

Nigeria’s Debt Outlook

Nigeria’s Eurobond issuance is also part of a broader strategy to manage upcoming debt maturities. The country faces two key repayment obligations by the end of 2025 — a $1.12 billion Eurobond maturing in November 2025, and a ₦100 billion sukuk bond issued to finance critical infrastructure projects.

The 7.625% Eurobond, issued in November 2018, represents a significant portion of Nigeria’s external debt portfolio and was originally used to support foreign reserves and capital projects in transport, power, and housing sectors.

Analysts view the new $2.3 billion Eurobond as both a refinancing tool and a liquidity booster, helping Nigeria strengthen its reserves while funding priority projects outlined in the 2025 budget. However, they caution that continued external borrowing could expose the country to exchange-rate risks if oil revenues underperform.

Looking Ahead

Nigeria’s return to the Eurobond market underscores its balancing act between raising foreign capital and safeguarding fiscal stability. The Tinubu administration hopes that steady policy implementation, coupled with global investor optimism toward African debt, will support a successful issuance despite recent geopolitical turbulence.

As global markets watch closely, the success of this Eurobond sale will serve as a litmus test of investor confidence in Nigeria’s economic trajectory — and its ability to navigate complex political and financial headwinds.

President Bola Ahmed Tinubu has formally requested the Senate’s approval for a new ₦1.15 trillion domestic loan to help finance Nigeria’s 2025 federal budget deficit, marking another major step in the administration’s efforts to balance fiscal responsibility with developmental priorities.

The request was conveyed in a letter addressed to Senate President Godswill Akpabio and read aloud during Tuesday’s plenary session. In the correspondence, Tinubu explained that the proposed borrowing would form a critical component of the government’s 2025 fiscal plan, aimed at bridging funding gaps and ensuring the smooth execution of high-impact projects across various sectors of the economy.

According to the president, the loan would serve as part of the federal government’s broader medium-term debt management strategy, which emphasizes the use of domestic borrowing to finance infrastructure, stimulate job creation, and enhance social welfare programs without overly exposing the country to foreign exchange risks.

“The proposed domestic borrowing will enable the government to meet its financial obligations for ongoing and new projects under the 2025 fiscal framework,” Tinubu stated. “It aligns with our commitment to responsible debt management, inclusive growth, and sustainable development.”

After reading the president’s letter, Senate President Akpabio referred the request to the Senate Committee on Local and Foreign Debt, chaired by Senator Haruna Manu, for in-depth review. The committee has been directed to submit its report within one week, after which the Senate will deliberate and vote on the request.

A Fiscal Strategy Rooted in Domestic Financing

The proposed ₦1.15 trillion domestic loan reflects the Tinubu administration’s ongoing shift toward domestic borrowing as a more sustainable financing option. Economists argue that such borrowing helps mitigate external vulnerabilities, particularly those linked to global interest rate volatility and currency depreciation.

Domestic loans are typically raised through government securities such as treasury bills, bonds, and sukuk instruments, which are purchased primarily by local institutional investors including pension funds, banks, and insurance firms.

By relying more on the domestic market, the federal government aims to strengthen Nigeria’s capital market depth while simultaneously supporting the growth of long-term investment instruments.

However, critics caution that the government’s growing dependence on debt to fund recurrent and capital expenditure continues to strain Nigeria’s fiscal stability, especially amid sluggish revenue performance and rising debt service costs.

Legislative and Economic Context

President Tinubu’s latest request follows several major borrowing approvals in recent months. In October 2025, the House of Representatives approved a $2.35 billion external borrowing request and a $500 million sovereign sukuk issuance to help finance portions of the 2025 budget and diversify Nigeria’s access to global capital markets.

Earlier in July 2025, the Senate had approved a $21.5 billion external borrowing plan covering 2025–2026. The plan focuses on infrastructure, power, agriculture, education, and healthcare. Additionally, the Senate authorized the issuance of a ₦757 billion Federal Government Bond to clear outstanding pension arrears under the Contributory Pension Scheme (CPS) as of December 2023.

Nigeria’s total public debt has continued to rise, reaching ₦149.39 trillion as of March 31, 2025, according to data from the Debt Management Office (DMO). This represents an increase of ₦27.72 trillion, or 22.8%, compared to ₦121.67 trillion recorded in March 2024.

In the same period, the DMO reported that it successfully raised ₦1.39 trillion through the issuance of domestic Sukuk bonds, which have been directed toward critical infrastructure projects, particularly roads and bridges across the federation.

Implications of the New Borrowing

Analysts note that President Tinubu’s ₦1.15 trillion borrowing request underscores the ongoing fiscal pressures facing Nigeria as it seeks to balance expenditure commitments with constrained revenue flows. The federal government’s 2025 budget, estimated at over ₦38 trillion, includes substantial allocations to defense, infrastructure, education, and social protection programs.

While borrowing remains a necessary tool for budget execution, the continuous rise in debt levels has fueled debate over Nigeria’s debt sustainability and repayment capacity. According to fiscal experts, more than 60% of government revenues are now devoted to debt servicing, leaving limited fiscal space for development initiatives.

Nonetheless, domestic borrowing presents certain advantages. It reduces exposure to currency risks since repayment obligations are denominated in naira. It also deepens local capital market participation, provides investment opportunities for pension funds, and helps the government manage liquidity cycles more effectively.

However, experts also warn that excessive domestic borrowing could crowd out private sector access to credit, driving up lending rates and slowing business expansion. The government’s challenge, therefore, lies in striking a delicate balance between borrowing for growth and maintaining fiscal prudence.

Looking Ahead

The Senate Committee on Local and Foreign Debt is expected to scrutinize the proposed ₦1.15 trillion facility in the coming days, focusing on the cost of borrowing, repayment terms, and the specific projects the funds are intended to support.

As Nigeria grapples with persistent fiscal pressures, declining oil revenues, and global economic uncertainty, the Tinubu administration’s fiscal strategy will be closely watched — not only for its impact on economic growth but also for its implications for debt sustainability and public accountability.