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The Federal Government has confirmed plans to raise $2.3 billion from the international debt market before the end of the year as part of its 2025 funding strategy.
The proposed Eurobond sale will refinance an existing $1.18 billion bond maturing in November and provide additional support for Nigeria’s external-reserve position.
Government officials said the transaction is part of a broader liability-management plan designed to reduce rollover risks, extend debt maturity, and sustain investor confidence in Nigeria’s sovereign credit profile.
The issuance is expected to be structured in multiple tranches, subject to market conditions and pricing outcomes at the time of offer.
According to the Central Bank of Nigeria (CBN), the engagement process with international investors has already begun at the ongoing IMF and World Bank Annual Meetings in Washington D.C., where fiscal and monetary authorities are presenting Nigeria’s macroeconomic outlook and reform progress.
The Deputy Governor for Economic Policy, Mohammed Sadi Abdullahi, said the upcoming Eurobond will build on the strong subscription levels recorded in the domestic debt market earlier this year.
He noted that all 2025 local issuances have been fully subscribed, reflecting renewed appetite for naira assets and broader confidence in Nigeria’s fiscal strategy.
He explained that the Eurobond programme will support external liquidity buffers while maintaining prudent debt ratios. Proceeds will partly refinance the maturing November bond and fund selected foreign-exchange stabilisation initiatives aimed at improving reserve adequacy.
Abdullahi added that government agencies are working closely with transaction advisers to determine the optimal structure and tenor mix.
He said the authorities remain committed to a transparent issuance process that balances market pricing with long-term debt sustainability objectives.
Analysts believe the decision to approach the Eurobond market at this stage signals a proactive approach to external-debt management.
The move is also expected to reassure global investors that Nigeria remains committed to honouring obligations and maintaining access to international capital.
Market participants anticipate that the bond could price within the prevailing yield corridor for comparable African sovereign issues, depending on investor perception of Nigeria’s recent fiscal and monetary reforms. These reforms include the new framework allowing investors to offset capital losses against gains, expanded corporate-tax deductions, and tighter liquidity control through a 75 percent Cash Reserve Ratio on public-sector deposits.
The Ministry of Finance has yet to disclose specific timing or coupon guidance, but officials confirmed that the offer documentation is in advanced preparation. Investor-engagement sessions are expected to continue through October ahead of final issuance approval.
The Eurobond programme forms part of the government’s strategy to diversify funding sources, reduce dependence on short-term domestic borrowing, and support balance-of-payments stability.
Analysts expect the transaction to be closely monitored by rating agencies and foreign-portfolio managers assessing Nigeria’s credit outlook for 2026.
If completed as scheduled, the $2.3 billion Eurobond will mark Nigeria’s return to the international market after a two-year hiatus and reinforce its standing among active African sovereign issuers.
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