The Nigerian Government is preparing to re-enter the Eurobond market before the end of 2025, aiming to raise approximately $2.3 billion. This move marks the country’s second international bond issuance since December, when it successfully raised $2.2 billion, ending nearly three years of dormancy in global debt markets.
Additionally, Nigeria plans to introduce a $500 million sukuk bond, marking its inaugural foray into Islamic finance instruments.
Patience Oniha, director-general of Nigeria’s debt management office, revealed in a Bloomberg interview that the government intends to issue Eurobonds in the last quarter of 2025, contingent on favorable market conditions. She emphasized that the $2.3 billion target will be influenced by the maturity periods of the bonds, which will also affect their pricing.
On Tuesday, President Bola Tinubu requested parliamentary approval for foreign borrowing of the same amount. The funds raised will support the government’s budgetary needs for the year and help refinance Eurobonds maturing next month.
A shift is underway across several African nations, moving from restrictive monetary policies aimed at curbing inflation to more growth-oriented borrowing strategies. This trend is encouraging countries to tap into international debt markets once again to secure capital for development.
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Recent examples include Kenya, which lowered interest rates for the eighth consecutive time this week, and Angola, both of which successfully raised billions through Eurobond issuances last week.
In September, Nigeria also eased its lending rate after five years of tightening monetary policy, which had peaked at 27.5% last year following an 8.8% hike.
The upcoming sovereign sukuk will be dedicated to funding infrastructure projects. Furthermore, 25% of the proceeds will be allocated to repaying higher-cost debts, contingent on the government’s ability to leverage a credit guarantee from the insurance division of the Islamic Development Bank, as stated by President Tinubu.