Nigeria is preparing to return to the Eurobond market before the end of 2025, seeking to raise up to $2.3 billion as global funding conditions improve following the US Federal Reserve’s first rate cut of the year.
Patience Oniha, director-general of the Debt Management Office (DMO), confirmed the plan on Wednesday in an interview with Bloomberg, saying the sale will take place in the fourth quarter “subject to market conditions.”
“In terms of what we need, it’s $2.3 billion,” Oniha said.
The transaction would mark Nigeria’s first Eurobond issuance since December 2024, when a $2.2 billion offer drew strong investor demand, with bids exceeding seven times the amount on sale.
Her disclosure came a day after President Bola Tinubu asked lawmakers to approve foreign loans of the same value, which he said would be raised through a mix of instruments. The West African nation is also planning its first international sukuk worth $500 million.
Tinubu’s letter to the National Assembly indicated that proceeds from the borrowing will support the 2025 budget and help refinance $1.1 billion in dollar-denominated debt due next month. It remains unclear whether the proposed Eurobond forms part of the broader foreign-loan package or will be pursued separately.
Fed easing revives investor demand
The timing aligns with improving global conditions after the U.S. Federal Reserve cut its benchmark rate by 25 basis points to 4% in September, easing financing costs for emerging-market issuers and boosting investor appetite for riskier sovereign debt.
Analysts at CSL Research had anticipated the move. “Should the Fed move, it could pave the way for Nigeria’s return to the Eurobond market, following last year’s successful $2.2 billion issuance,” CSL said in a recent note. “We anticipate Nigeria could re-enter the international debt market before year-end.”
Yields on Nigeria’s existing Eurobonds have tightened since midyear, reflecting stronger investor sentiment and renewed confidence in ongoing fiscal and monetary reforms. The yield spread over US Treasuries has narrowed by nearly 300 basis points since April, the lowest in seven years according to Bloomberg data.
Proceeds from the planned sale are expected to finance part of the 2025 fiscal deficit and bolster foreign reserves.
The DMO has long maintained that external borrowing remains central to Nigeria’s debt strategy, helping to extend maturities, diversify funding sources, and ease pressure on the domestic market.
Nigeria’s planned return follows renewed activity among African sovereigns, with Kenya and Angola completing multi-billion-dollar issuances this year.
