Nigeria has made a powerful return to the international capital markets, successfully raising $2.25 billion through a dual-tranche Eurobond issuance that was met with overwhelming demand from global investors. The Debt Management Office (DMO) announced that the offering attracted orders exceeding $13 billion, marking the largest order book ever recorded for a Nigerian Eurobond and signalling a dramatic resurgence of international confidence in the nation's economic trajectory.
Unprecedented Demand and Pricing Details
The issuance, which took place in late 2025, consisted of two instruments: a 10-year bond and a 20-year bond. The 10-year note was priced at a yield of 8.625%, while the longer 20-year instrument was priced at 9.125%. These bonds are set to mature in 2036 and 2046, respectively. The staggering oversubscription, at nearly six times the offered amount, underscores a significant shift in investor sentiment. Participation was broad-based, with strong interest from institutional investors in the United Kingdom, North America, Europe, Asia, the Middle East, and within Nigeria itself.
Reforms Fueling Investor Appetite
Financial analysts and portfolio managers are unanimous in attributing this successful outing to the series of bold economic reforms implemented by the Nigerian government and the Central Bank of Nigeria (CBN) under Governor Olayemi Cardoso. Key among these are the liberalisation of the foreign exchange (FX) market, efforts to improve currency liquidity, and the clearance of a multi-billion dollar FX backlog. The government's commitment to ending costly fuel subsidies and halting central bank financing of fiscal deficits has also been pivotal.
Emre Akcakmak, a portfolio manager at East Capital, declared the development as evidence that Nigeria is "back in business," citing the tangible impact of long-awaited reforms. Similarly, Samir Gadio, Head of Africa Strategy at Standard Chartered, pointed to improved FX market functioning and reduced volatility in the dollar-naira exchange rate as primary factors supporting the influx of investor capital.
Tangible Economic Impacts and Expert Caution
The immediate effects of the successful bond sale have been positive for Nigeria's financial metrics. Following the issuance, the Nigerian Naira appreciated, closing at N1,436.74 at the official foreign exchange market. More significantly, the country's external reserves received a substantial boost, climbing to $46.07 billion—the highest level recorded in seven years.
While celebrating the achievement, economists urge sustained policy consistency. Analysts at Comercio Partners noted that while Eurobond inflows strengthen fiscal buffers and signal confidence, they also increase Nigeria's exposure to foreign exchange risk and elevate future external debt servicing obligations. The consensus among experts is that maintaining the current reform momentum is critical for long-term economic sustainability.
The landmark deal has drawn commendation from the highest levels of government. President Bola Tinubu welcomed the outcome as a clear endorsement of his administration's macroeconomic framework. Finance Minister Wale Edun stated that the record subscription reflects global confidence in Nigeria's reform agenda and long-term growth prospects. DMO Director-General, Patience Oniha, confirmed that the raised funds will support the 2025 budget and help diversify the government's funding sources. The Eurobond notes are scheduled to be listed on the London Stock Exchange, the FMDQ Securities Exchange, and the Nigerian Exchange Limited.
