Nigeria Records $2.25bn Oversubscription in Eurobond Market
- Nigeria has raised $2.25 billion through a heavily oversubscribed dual-tranche Eurobond issuance, according to the latest report from the Debt Management Office (DMO)
- The DMO said the offering attracted more than $13 billion in orders from global and domestic investors, reflecting renewed global confidence in Nigeria’s economy
- Analysts link the strong demand to Nigeria’s recent fiscal and monetary reforms, including FX liberalisation, as the government promised to intensify reforms
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, tech and macroeconomic trends in Nigeria.
Nigeria has re-entered the international capital market with a successful dual-tranche Eurobond issuance worth $2.25 billion, according to details released by the Debt Management Office (DMO).
The 10-year and 20-year instruments were oversubscribed and priced at 8.625% and 9.125%, signalling renewed investor confidence in Nigeria’s economic and monetary reforms.
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The DMO explained that the bonds, which will mature in 2036 and 2046 respectively, attracted more than $13 billion in orders, the largest order book ever recorded for a Nigerian Eurobond.
Investors from the UK, North America, Europe, Asia, the Middle East, and Nigeria participated in the issuance, reflecting broad global interest in the country’s fiscal direction.
Analysts say the appetite for the bond reflects the impact of the Central Bank of Nigeria’s (CBN) recent policy actions, including reforms in the foreign exchange market, improved currency liquidity, and strengthened fiscal transparency.
Portfolio manager at East Capital, Emre Akcakmak, described the development as evidence that Nigeria is “back in business” as long-awaited reforms continue to take shape, The Sun reported.
Similarly, Standard Chartered’s head of Africa strategy, Samir Gadio, told Bloomberg that improved FX market functioning, moderating dollar-naira volatility, and structural reforms have supported investor inflows.
He noted that Nigeria’s markets are currently less sensitive to global risk conditions than many other emerging markets.
Since 2023, the CBN under Governor Olayemi Cardoso has introduced several measures aimed at stabilising the economy. These include liberalisation of the FX market, halting central bank financing of the fiscal deficit, and supporting government efforts to reform fuel subsidies.
Cardoso said these actions have improved FX availability, boosted external reserves, and enhanced investor confidence.
The government’s reform efforts have also been recognised by rating agencies, which recently improved Nigeria’s sovereign outlook. Additional investments, such as the development of a major private refinery, are also helping to strengthen the country’s position in a deregulated downstream sector.
The World Bank has praised the CBN’s decision to unify the exchange rate and clear more than $7 billion in FX backlogs, noting that such steps are important for long-term economic sustainability. Nigeria’s sovereign risk spreads have also declined to their lowest level since early 2020.
Experts demand sustained policy consistency
To further address inflation, the CBN recently held the Monetary Policy Forum 2025, bringing together stakeholders to discuss the disinflation process.
Cardoso reiterated the bank’s commitment to price stability, improved policy coordination, and a planned shift to an inflation-targeting regime.
The CBN has also introduced new capital requirements for banks, effective March 2026, aimed at strengthening the financial sector ahead of the country’s ambition to build a $1 trillion economy. According to Cardoso, restoring policy credibility and maintaining a proactive monetary stance remain key priorities.
Source: Twitter
Following the Eurobond sale, the naira appreciated slightly, closing at N1,436.74 at the official FX market. The issuance also helped lift Nigeria’s external reserves to $46.07 billion, the highest level in seven years.
Economists at Comercio Partners said the oversubscription highlights renewed investor interest in Nigerian assets, driven by ongoing reforms such as fuel subsidy removal and FX market adjustments.
They, however, noted that while Eurobond inflows strengthen reserves and fiscal stability, they also come with exposure to FX risk and higher external debt servicing costs.
Nigeria’s recent exit from the Financial Action Task Force (FATF) grey list has also boosted confidence, according to analysts at Parthian Securities, who described the more than 400% oversubscription as a strong vote of confidence in the country’s economic trajectory.
Tinubu, Edun boast of improved confidence in Nigeria’s economy
President Bola Tinubu welcomed the outcome, boasting that it is evidence of sustained investor trust in Nigeria’s macroeconomic framework.
The president said:
“We are delighted by the strong investor confidence demonstrated in our country and our reform agenda. This development reaffirms Nigeria’s position as a recognised and credible participant in the global capital market.”
Finance Minister Wale Edun added that the record subscription reflects global confidence in the government’s reform agenda and long-term growth outlook.
DMO Director-General Patience Oniha said the notes will be listed on the London Stock Exchange, FMDQ Securities Exchange, and the Nigerian Exchange Limited.
She noted that the funds would support the 2025 budget and diversify the government’s funding sources.
DMO auctions bonds worth N200 billion
Legit.ng earlier reported that the DMO auctioned two Federal Government bonds worth N200 billion on August 25, with settlement on August 27.
According to the agency, the bonds were made available at a minimum subscription of N50,001,000, with further purchases in multiples of N1,000.
It also disclosed that the bonds are tax-exempt for certain investors, qualify as liquid assets for banks, and are backed by the full credit of the Federal Government of Nigeria.
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Source: Legit.ng
