Nigeria has officially rolled out a fresh Eurobond issuance worth $2.25 billion, according to lead arranger Chapel Hill Denham, marking another major return to the international debt market as the government seeks to fund its widening fiscal deficit and stabilize public finances.
The issuance — split into two tranches with 10-year notes priced at 9.125% and 20-year notes at 9.625% — comes despite a week of heightened political tension following comments by U.S. President Donald Trump, who threatened possible military action if Abuja failed to take stronger action on attacks against Christian communities.
Although the remarks sparked a brief dip in the secondary market, Nigeria’s long-dated Eurobonds quickly recovered, indicating that investors continue to prioritize carry and yield opportunities over short-term political noise. Traders say the sharp rally in global debt markets since mid-year has made frontier sovereigns far more attractive, and issuers are trying to take advantage while yields remain relatively favourable.
Nigeria, Africa’s largest oil producer and largest economy, has seen its revenue come under pressure due to subsidy expenses, pipeline disruptions, and delayed tax reforms — making external borrowing a key pillar in government financing for 2025.
Multiple African sovereigns are also tapping into the same window: the Republic of Congo issued its first Eurobond since the mid-2000s this week, while Kenya and Angola both successfully priced new bonds in October. Emerging market sovereign issuance globally has already surpassed previous annual records, reflecting stronger appetite for high-yield debt even in a still-fragile world economy.
Nigeria’s parliament had earlier authorised external borrowing of up to $2.85 billion this fiscal year, giving Abuja room to raise additional funds beyond this round of issuance if market conditions remain supportive. Government officials have also signalled that a portion of proceeds may be used to refinance expensive domestic debt to ease pressure on local interest rates.
Source:Africa Publicity
