Nigeria has successfully raised $2.25 billion through a dual-tranche Eurobond, marking a significant comeback to the international capital market. The issuance — consisting of 10-year and 20-year bonds — was oversubscribed by more than $13 billion, showing robust investor appetite for Nigerian debt. The bonds were priced at 8.625% and 9.125%, respectively, tighter than expected, reflecting renewed confidence in the country’s ongoing economic reforms and improved monetary policy management.
Global investors are once again showing optimism toward Nigeria’s macroeconomic trajectory, largely driven by reforms under the Central Bank of Nigeria (CBN) and fiscal authorities. CBN Governor Olayemi Cardoso’s liberalization of the foreign exchange market, reduction of deficit financing, and reform of fuel subsidies have strengthened market confidence. Analysts note that portfolio inflows are increasing as Nigeria’s exchange rate stabilizes and inflation begins to ease, boosting investor trust in the government’s long-term reform agenda.
The Debt Management Office (DMO) confirmed that the Eurobond attracted orders from across Europe, North America, Asia, and the Middle East, as well as Nigerian investors. This marks Nigeria’s largest-ever order book, underscoring the global community’s faith in its fiscal management and transparency. Finance Minister Wale Edun described the oversubscription as “a powerful endorsement” of Nigeria’s reform path and commitment to inclusive, sustainable growth.
The success of the Eurobond has coincided with a surge in Nigeria’s foreign reserves, which climbed to a seven-year high of $46.07 billion, while the naira appreciated slightly on the official market. Market analysts say the reforms—though challenging—have positioned Nigeria as an attractive investment destination. With improved FX liquidity, rising reserves, and the country’s removal from the FATF grey list, Nigeria is regaining credibility as a stable emerging market economy.
Experts and fund managers have hailed the Eurobond’s success as a sign that Nigeria’s economy is “back in business.” The proceeds will help finance the 2025 fiscal deficit and strengthen reserves. As President Bola Tinubu affirmed, the issuance demonstrates “strong investor confidence in Nigeria’s sound macroeconomic framework.” With the bonds set to be listed on the London Stock Exchange, FMDQ Securities, and the Nigerian Exchange, the move signals a new era of financial stability and restored investor trust in Africa’s largest economy.
source: punch