Nigeria Faces $1.12B Eurobond and N100B Sukuk Maturities in Late 2025 Amid Rising Debt Pressures
Nigeria is bracing for two major debt obligations before the end of 2025, including a $1.12 billion Eurobond and a N100 billion Sukuk bond, marking a crucial test of the country’s fiscal resilience. The Eurobond, issued in November 2018 with a 7.625% coupon, is set to mature on November 21, 2025, while the 15.743% Sukuk bond, issued through FGN Roads Sukuk Company 1 Plc, will mature on December 28, 2025. Together, these obligations amount to over N1.7 trillion when converted at the current exchange rate of N1,465/$, underscoring the government’s growing debt service challenge.
The Eurobond was initially well-received by investors despite global market uncertainty, supporting infrastructure projects and shoring up foreign reserves. Meanwhile, the Sukuk, valued at approximately $68.5 million, highlights Nigeria’s push to diversify financing through Islamic finance instruments. Analysts are now closely watching whether the government will refinance, borrow anew, or employ alternative repayment strategies to manage these looming maturities.
Data from the Debt Management Office (DMO) shows that Nigeria spent over N5 trillion on debt servicing in the first half of 2025, with external obligations consuming $2.32 billion. The IMF and Eurobond repayments accounted for nearly 65% of these outflows, with $816 million going to the IMF alone. Concessional lenders like the World Bank and African Development Bank absorbed roughly $463 million combined, while Chinese loans fell to $236 million, reflecting a shift from bilateral to market-based borrowing.
Domestically, debt pressures remain significant. FGN Bonds and Treasury Bills accounted for the bulk of local repayments, consuming N1.6 trillion of N1.7 trillion spent between April and June 2025. Analysts warn that the high proportion of interest payments and reliance on short-term borrowing increase rollover risks, limiting funding for essential sectors like education, healthcare, and infrastructure.
Experts advocate for a balanced approach to debt management. Akin Olaniyan of Chatterhouse Limited urges Nigeria to expand non-oil revenues, pursue productive investments, and consider debt restructuring where necessary. Investment banker Tajudeen Olayinka emphasizes improving policy coordination and monetary transmission to manage foreign obligations effectively. Both agree that disciplined borrowing, revenue diversification, and private sector mobilization are critical to ensuring Nigeria’s debt sustainability.
source: Nairametrics