The Federal Government of Nigeria has successfully concluded a $2.35 billion Eurobond issuance in the international capital markets, a significant achievement made despite recent geopolitical headwinds, including threats of sanctions and military action from United States President Donald Trump. The Debt Management Office (DMO) confirmed the transaction, detailing that the issuance was strategically split into two tranches: $1.25 billion in a 10-year bond maturing in 2036, and $1.10 billion in a 20-year bond maturing in 2046. These bonds were priced at yields of approximately 8.6308 percent (or 8.625 percent) and 9.1297 percent (or 9.125 percent) respectively, indicating strong market confidence.

Remarkably, the transaction attracted an overwhelming response from global investors, with the orderbook peaking at over $13 billion. This represents an oversubscription of 453 percent, or $10.65 billion, underscoring robust international appetite for Nigeria’s debt. The DMO highlighted that Nigeria garnered interest from a wide array of investors across multiple jurisdictions, including the United Kingdom, North America, Europe, Asia, and the Middle East, alongside significant participation from Nigerian investors. Demand was diversified across investor classes, encompassing Fund Managers, Insurance and Pension Funds, Hedge Funds, Banks, and other Financial Institutions, signaling a broad expression of continued investor confidence in the country’s sound macro-economic policy framework and prudent fiscal and monetary management.

The issuance proceeded even as US President Donald Trump had designated Nigeria as a “Country of Particular Concern” over alleged widespread killings of Christians and rising religious intolerance, threatening sanctions and military action if the government failed to curb the violence. This political pressure led to a brief delay in the sale. However, Nigeria defied these threats, with Minister of Foreign Affairs, Yusuf Tuggar, confirming that the Nigerian government was actively engaging with the Trump administration to clarify its constitutional protection of religious freedoms and its robust efforts to combat Islamist attacks. This successful market access, despite such external pressures, speaks volumes about Nigeria's resilience and its recognized standing in the global capital market.

The proceeds from this Eurobond issuance are earmarked for crucial governmental objectives. A primary use is to finance the 2025 fiscal deficit and support broader government financing needs. Additionally, a strategic portion of the funds will be used as a proactive measure to refinance $1.118 billion of dollar debt maturing by the end of November, an approach consistent with standard practice in international debt markets to avoid default and maintain investor confidence. DMO Director-General Patience Oniha cited examples of other countries like Kenya, Cameroon, Gabon, and Angola that have employed similar refinancing strategies, underscoring this as a common and prudent financial maneuver.

Nigerian leadership welcomed the outcome with optimism. President Bola Ahmed Tinubu expressed his delight, describing the strong investor confidence as a reflection of trust in Nigeria’s reform agenda and reaffirming its position as a credible participant in the global capital market. Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, echoed this sentiment, stating that the successful market access demonstrates the international community’s continued confidence in Nigeria’s reform trajectory and its commitment to sustainable, inclusive growth. Patience Oniha further emphasized the significance of Nigeria’s ability to access the Eurobond Market for long-term funding, aligning with the DMO’s objectives of supporting development and diversifying funding sources.

The newly issued Notes will be officially listed on the London Stock Exchange’s (LSE) regulated market, the FMDQ Securities Exchange Limited, and the Nigerian Exchange Limited (NGX), enhancing transparency and accessibility for investors. The transaction was skillfully managed by a consortium of leading financial institutions including Chapel Hill Denham, Citigroup, Goldman Sachs, J.P. Morgan, and Standard Chartered Bank, who served as Joint Bookrunners. FSDH Merchant Bank Limited provided expert financial advisory services for the issuance.