Nigeria has raised $2.35 billion through 10- and 20-year Eurobonds despite geopolitical tensions and domestic revenue shortfalls, signalling continued investor confidence in Africa’s largest economy.
The Debt Management Office (DMO) announced on Wednesday that investors purchased $1.25 billion of 10-year notes at an interest rate of 8.63% and $1.1 billion of 20-year bonds at 9.13%.
The total exceeded the government’s initial target of $2.3 billion, with orders peaking at $13 billion — an oversubscription rate of 453%, the highest in Nigeria’s history.
“Nigeria is pleased to have attracted a wide range of investors from multiple jurisdictions,” the DMO said, citing participation from the United Kingdom, North America, Europe, Asia, the Middle East, and local markets.
“This significant milestone underscores the strong support for the transaction across geography and investor class,” it added.
The Eurobond proceeds will help finance the 2025 fiscal deficit and other government needs, according to the DMO. The 10-year bond will mature on January 13, 2036, while the 20-year note will mature on January 13, 2046.
President Bola Tinubu hailed the bond sale as proof of global faith in Nigeria’s economic direction. “We are delighted by the strong investor confidence demonstrated in our country and our reform agenda,” he said.
“This development reaffirms Nigeria’s position as a recognised and credible participant in the global capital market.”
The sale came just days after U.S. President Donald Trump threatened military action against a West African nation over alleged persecution of Christians — a claim Nigeria denied. Tinubu has since pledged cooperation with Washington on counterterrorism and regional stability.
Economic context and market reactions
Nigeria’s economy faces persistent revenue gaps, driven by weak oil receipts that supply roughly 80% of government income. To bridge the deficit, Tinubu has also requested parliamentary approval to borrow ₦1.5 trillion locally.
Economist Dr Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, said the success of the Eurobond reflects investor faith in Nigeria’s macroeconomic fundamentals.
“When investors are investing in bonds, they look at the macroeconomic fundamentals, including foreign reserves, that can affect the country’s ability to repay,” he told Allen Dreyfus.
Nigeria’s foreign reserves — including gold reserves totalling 43.28 tonnes — stood at $43.28 billion on November 4, 2025, up 5.77% from $40.92 billion in January, according to Central Bank data. “Investors from mature markets cannot get this kind of yield in their home markets,” Yusuf added.
Abuja-based accountant Godwin Ukah said the results show confidence in Nigeria’s long-term prospects. “High-risk takers overlooked the threats and focused on the potential of the Nigerian economy,” he said.
The Notes will be listed on the London Stock Exchange, the FMDQ Securities Exchange, and the Nigerian Exchange Limited. Citigroup, Goldman Sachs, J.P. Morgan, Standard Chartered Bank, and Chapel Hill Denham acted as joint bookrunners, with FSDH Merchant Bank serving as financial adviser.
