Record-Breaking $2.25bn Eurobond Sale Boosts Nigeria’s Global Market Credibility

Nigeria’s successful $2.25 billion Eurobond issuance has reignited global investor confidence, reflecting growing optimism in the country’s economic reforms, fiscal discipline, and monetary stability, TEMITOPE AINA reports.

Last week, Nigeria raised $2.25bn through a dual-tranche Eurobond, marking a major return to international capital markets. The 10-year and 20-year bonds, maturing in 2036 and 2046, were oversubscribed and priced at 8.625% and 9.125% respectively, tighter than initial guidance. The overwhelming demand, exceeding $13 billion, underscores robust confidence in Nigeria’s fiscal and monetary reforms, including Central Bank of Nigeria (CBN) foreign exchange policies, enhanced fiscal transparency, and improved macroeconomic stability.

Analysts attribute the strong investor appetite to Nigeria’s ongoing economic reforms, such as the liberalization of the foreign exchange market, cessation of central bank financing of the fiscal deficit, removal of fuel subsidies, and strategic fiscal measures aimed at stabilizing inflation. International reserves have risen to $46.07bn, the highest in seven years, while the naira appreciated slightly following the Eurobond issuance.

Global investors from the UK, North America, Europe, Asia, and the Middle East, alongside domestic participants, took part in the sale, signaling both international and local endorsement of Nigeria’s reform agenda. Experts highlight that the Eurobond oversubscription—over 400%—demonstrates renewed confidence in the country’s economic outlook, buoyed by improvements such as Nigeria’s removal from the FATF grey list and rating agency upgrades.

President Bola Tinubu described the successful issuance as an affirmation of Nigeria’s sound macroeconomic policies and fiscal prudence, while Finance Minister Wale Edun noted it reflects the global community’s confidence in the country’s reform trajectory. Patience Oniha, Director-General of the Debt Management Office, added that the issuance reinforces Nigeria’s ability to diversify funding sources and support its growth agenda.

The Eurobonds will be listed on the London Stock Exchange, FMDQ Securities Exchange Limited, and the Nigerian Exchange Limited, enhancing liquidity and broadening Nigeria’s investor base. Joint book-runners included Chapel Hill Denham, Citigroup, Goldman Sachs, J.P. Morgan, and Standard Chartered Bank, with FSDH Merchant Bank serving as financial adviser.

Economists and market participants say the transaction is a clear indicator that Nigeria is regaining credibility in global capital markets, with improvements in GDP growth, currency stability, and interest rates signaling that the country’s economy is moving in the right direction.