The Nigerian government returns to international markets with a $2.25 Billion dual-tranche eurobond offering on Wednesday, to secure much-needed foreign currency to address its fiscal needs and manage maturing debt obligations.
The issuance, follows the National Assembly’s approval of the borrowing plan, which aims to partially finance the 2025 fiscal budget deficit and, crucially, refinance a significant portion of the country’s existing dollar-denominated debt.
The $2.25 billion offering is structured as Senior Unsecured Notes across two distinct maturities, targeting global investors seeking higher yields from emerging markets:
- First Tranche tenor is 10 years and matures November 13, 2035 with 9.125% coupon rate.
- Second Tranche tenor is 20 years and matured November 12, 2045 with 9.625% coupon rate.
A portion of the proceeds will be utilized to provide essential capital for the funding of the 2025 fiscal deficit. Nigeria has a total budget deficit of N 13 trillion ($9 billion).
The sale is expected to help the Debt Management Office (DMO) refinance the $1.18 billion Eurobond maturing in November 2025. This liability management operation is critical for extending the maturity profile of Nigeria’s external debt and reducing short-term repayment pressures.
The borrowing increases the west African country’s total public debt stock.
However, Nigeria’s Debt-to-GDP ratio remains within internationally accepted thresholds. The International Monetary Fund (IMF) projected Nigeria Debt-to-GDP could ease to 36.4% before the end of 2025; down from about 39.4% in early 2025, well below the World Bank/IMF recommended threshold of 55% for developing countries.
Meanwhile, Nigeria president Bola Ahmed Tinubu has also recently requested approval for an additional N1.15 trillion domestic loan to cover an unfunded gap created by budget increases by the National Assembly.
