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Nigeria successfully raised $2.25 billion in a dual-tranche Eurobond issuance last week, marking a major return to international capital markets. The 10-year and 20-year bonds were oversubscribed and priced at 8.625 per cent and 9.125 per cent, respectively — tighter than initial guidance. The debts oversubscription is a reflection of robust investor confidence in Nigeria’s fiscal and monetary policy reforms and improving risk sentiment toward frontier markets. For other stakeholders, rising investor appetite for Nigerian debts has been buoyed by Central Bank of Nigeria (CBN’s) FX reforms, improving fiscal transparency and rising market confidence.
Investors across the globe are swooping on Nigerian assets as the impact of the Central Bank of Nigeria (CBN) reforms in the financial sector spreads to key sectors of the economy.
Nigeria is finally getting a favourable nod from investors, as seen in the successful issuance of $2.25 billion in a dual-tranche Eurobond last week.
The Eurobonds maturing in 2036 and 2046, marks the largest-ever order-book achieved by the country and underscoring strong investor confidence in its macroeconomic policies and fiscal management.
The 10-year, $1.25 billion bond, maturing in 2036, was priced at a coupon of 8.6308 percent, while the 20-year, $1.10 billion note due in 2046, carried a coupon of 9.1297 percent.
The transaction, concluded last week, attracted orders exceeding $13 billion, reflecting broad-based demand from investors across multiple jurisdictions, including the United Kingdom, North America, Europe, Asia, and the Middle East, the Debt Management Office (DMO) said in a statement.
Nigerian investors also participated in the Eurobond offer, signaling domestic endorsement of the government’s reform agenda.
Before the issuance, Nigeria’s investment image gad soared, prompting positive feedback from global analysts.
“Nigeria appears to be back in business as long-awaited economic reforms take shape,” said Emre Akcakmak, portfolio manager at East Capital. Key measures include improved currency liquidity, leeway for investors to repatriate their profit, and the stable naira. “We feel the Central Bank of Nigeria will continue to stem any sharp appreciation of the naira to limit profit taking from the fast money community,” Akcakmak said earlier.
“Portfolio inflows have likely been supported by improved confidence amid key structural reforms, better FX market functioning and moderating dollar-naira volatility, as well as the still-robust nominal yield buffer,” said Samir Gadio, head of Africa strategy at Standard Chartered Plc told Bloomberg. “Besides, Nigeria’s local market is seen as less correlated with global risk conditions than more liquid EM peers,” he added.
How the economic reforms started
The CBN had embarked on a series of bold reforms to attract more foreign capital to the economy, achieve price and exchange rate stability.
In 2023, the new administration and the CBN-led by its Governor, Olayemi Cardoso liberalised the foreign exchange market, stopped central bank financing of the fiscal deficit, and reformed fuel subsidies. The government also strengthened revenue collection and took strategic steps to reduce surging inflation rate.
Since these reforms were implemented, international reserves have increased, and people can now access foreign exchange in the official market.
Besides, Nigeria successfully returned to international capital markets last December and was recently upgraded by rating agencies. A new domestic, private refinery is positioning Nigeria up the value chain in a fully deregulated market.
CBN’s policies, including the currency reforms, led to investment inflows from abroad, and reduced interventions in the domestic forex market.
The unification of exchange rates and the clearing of over $7 billion FX backlog raised the country’s investment outlook, with multilateral organizations, like the World Bank describing it as bold intervention to improve the economy’s sustainability in the long run.
Also, Nigeria’s sovereign risk spread has fallen to the lowest level since January 2020, erasing the premium accumulated during the pandemic and subsequent strain on its economy. All these are deliberate efforts to woo investors and sustain capital inflows to the economy.
In its efforts to tame inflation, the CBN recently hosted the Monetary Policy Forum 2025, featuring fiscal authorities, legislative, private sector, development partners, subject-matter experts, and scholars with the theme: “Managing the Disinflation Process.” The forum is a major push to improve monetary policy communication, foster dialogue, and collaborate on critical issues shaping monetary policy.
During the event, Cardoso explained that the apex bank’s focus is to sustain price stability, the planned transition to an inflation-targeting framework, and strategies to restore purchasing power and ease economic hardship. He said the apex bank is continuing its disciplined approach to monetary policy, aimed at curbing inflation and stabilising the economy. Cardoso reiterated that the goal of the CBN is to ensure that monetary policy remains forward-looking, adaptive, and resilient.
In addressing our economic challenges, collaboration is key: “Managing disinflation amidst persistent shocks requires not only robust policies but also coordination between fiscal and monetary authorities to anchor expectations and maintain investor confidence. Our focus must remain on price stability, the planned transition to an inflation-targeting framework, and strategies to restore purchasing power and ease economic hardship,” Cardoso said.
The CBN also focused on strengthening the banking sector, introducing new minimum capital requirements for banks (effective March 2026) to ensure resilience and position Nigeria’s banking industry for a $1 trillion economy. These reforms and developments reflect the Bank’s commitment to creating an enabling environment for inclusive economic development.
However, achieving macroeconomic stability requires sustained vigilance and a proactive monetary policy stance. “As we shift from unorthodox to orthodox monetary policy, the CBN remains committed to restoring confidence, strengthening policy credibility, and staying focused on its core mandate of price stability,” Cardoso stated.
Continuing, he said monetary policy easing became necessary following a review of macroeconomic developments.
According to him, the decision by the MPC to ease the policy stance was made in the light of improving inflation trends. “The committee’s decision to lower the monetary policy rate was predicated on the sustained disinflation recorded in the past five months, projections of declining inflation for the rest of 2025 and the need to support economic recovery efforts,” Cardoso said.
Post Eurobond issuance market reactions
The naira last week appreciated as Nigeria’s external reserves are seen climbing to a seven-year high of $46.07 billion, following the successful issuance of Eurobonds.
The last time Nigeria economy recorded a comparable reserve level was on August 24, 2018, when it stood at $46.09 billion.
CBN data showed that the naira closed at N1,436.74, gaining N1.75 or 0.12 per cent compared to N1,438.49 quoted at the NFEM.
In emailed note to investors, Head, Investment Research Comercio Partners Limited, Dr. Ifeanyi Uba, explained that investor appetite for Nigerian debt has been buoyed by ongoing economic reforms, including fuel subsidy removal and naira devaluation, which, though economically painful, have improved fiscal transparency and market confidence.
“With emerging market governments issuing nearly $240 billion in debt so far this year, surpassing even pandemic-era levels, Nigeria’s return underscores both the renewed investor hunt for yield and a sign that African frontier economies may once again diversify funding sources amid more favorable global conditions,” he said.
Other analysts at Comercio Partners described the Eurobond issuance as a strong reaffirmation of investor confidence despite a tense global geopolitical backdrop. They noted that while the inflows will bolster reserves, provide fiscal breathing room, and strengthen Nigeria’s capacity to meet short-term obligations, the move also increases exposure to foreign exchange risk and heightens interest burdens in hard currency.
They added that with the Central Bank’s ongoing efforts to unify the FX market and clear outstanding backlogs, actions that have temporarily restored investor confidence, maintaining currency stability will remain critical to sustaining these gains.
Adebowale Funmi, head of Research at Parthian Securities, said Nigeria’s Eurobond oversubscription by over 400 percent reflects strong investor confidence in the country’s economic outlook. This renewed optimism is largely driven by ongoing reforms and Nigeria’s recent removal from the FATF grey list, both of which have improved the country’s credibility and perception in global markets.
Understanding the Eurobond Issuance
Nigeria’s latest $2.35 billion Eurobond issuance, which includes 10-year and 20-year tranches, marked the largest order-book in the country’s history, highlighting renewed investor confidence in its macroeconomic and fiscal reforms.
The Debt Management Office (DMO) said the transaction said the debt issuance attracted orders exceeding $13 billion from investors across the United Kingdom, North America, Europe, Asia, and the Middle East.
The 10-year $1.25 billion bond maturing in 2036 was priced at a coupon of 8.6308 percent, while the 20-year $1.10 billion note due in 2046 carried a coupon of 9.1297 percent.
The DMO also disclosed that Nigerian investors participated in the offer, underscoring domestic support for the government’s reform agenda.
The net proceeds from the Eurobond issuance would be used to finance the 2025 fiscal deficit and support the government’s other financing needs.
President Bola Ahmed Tinubu said the huge success recorded by the issue was an expression of continued investor confidence in the country’s sound macro-economic policy framework and prudent fiscal and monetary management.
He 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”.
Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, said the record subscription was an indication of the global confidence in the country’s macroeconomic outlook.
“This successful market access demonstrates the international community’s continued confidence in Nigeria’s reform trajectory and our commitment to sustainable, inclusive growth,” Edun said.
Director General, Debt Management Office (DMO), Patience Oniha, said the issuance attracted demand from a combination of fund managers, insurance and pension funds, hedge funds, banks and other financial institutions, underlining the country’s strong support base across geography and investor class.
She said: “Nigeria’s ability to access the Eurobond Market to raise long term funding needed to support the growth agenda of President Tinubu is a major achievement for Nigeria and is consistent with the DMO’s objectives of supporting development and diversifying funding sources”.
She explained that the notes will be admitted to the official list of the UK Listing Authority and available to trade on the London Stock Exchange’s regulated market, the FMDQ Securities Exchange Limited and the Nigerian Exchange Limited.
Other analysts said the development reflects growing investor confidence in the government’s economic management.
“It means one thing, confidence in the Nigerian government,” he said. “the strong subscription to the Eurobond shows that confidence is returning. This is just the beginning, and it demonstrates that things are improving. We are already seeing the results, GDP is growing, exchange rate is stable, and interest rates are coming down. These positive indicators show that the economy is moving in the right direction,” they said.
The Eurobonds will be listed on the London Stock Exchange’s regulated market, the FMDQ Securities Exchange Limited, and the Nigerian Exchange Limited.
Market participants say the listing is expected to enhance liquidity and attract a diverse investor base, reinforcing Nigeria’s status in the global bond market.
Joint book-runners for the Eurobond issuance included Chapel Hill Denham, Citigroup, Goldman Sachs, J.P. Morgan, and Standard Chartered Bank, while FSDH Merchant Bank Limited served as financial adviser.
