DMO says oversubscribed issuance shows global confidence in Tinubu’s reforms and Nigeria’s fiscal direction….
Nigeria has successfully raised $2.25 billion from the international capital market (ICM) through a Eurobond issuance, marking a major milestone in the country’s return to global debt markets.
The Debt Management Office (DMO) announced the achievement in a statement on Wednesday, revealing that the transaction attracted a record orderbook of over $13 billion, Nigeria’s largest-ever investor demand for an international bond sale.
The overwhelming interest represents a 477 percent oversubscription, underscoring global investor confidence in Nigeria’s economic reforms despite recent geopolitical tensions.
Details of the Issuance
According to the DMO, the country issued two tranches , a 10-year note maturing in 2036 and a 20-year note maturing in 2046 valued at $1.25 billion and $1.10 billion, respectively.
The 10-year bonds were priced at a yield of 8.63 percent, while the 20-year notes carried a 9.13 percent yield.
“The transaction attracted a peak orderbook of over $13 billion, marking the largest ever achieved by the Republic,” the DMO said.
“This milestone underscores strong support across geography and investor class, including fund managers, pension and insurance funds, hedge funds, banks, and other financial institutions.”
The debt office said investors from the United Kingdom, North America, Europe, Asia, and the Middle East participated actively in the issuance, alongside Nigerian institutional investors.
Strong Vote of Confidence
The DMO described the robust investor participation as a clear vote of confidence in Nigeria’s macroeconomic framework and its ongoing fiscal and monetary reforms.
“The level of interest reflects confidence in Nigeria’s economic direction and prudent policy management,” the agency stated.
The bonds will be listed on the London Stock Exchange, FMDQ Securities Exchange, and the Nigerian Exchange Limited (NGX).
Proceeds from the issuance will be used to finance the 2025 fiscal deficit and support the federal government’s budgetary needs.
Nigeria appointed Chapel Hill Denham, Citigroup, Goldman Sachs, J.P. Morgan, and Standard Chartered Bank as Joint Bookrunners, while FSDH Merchant Bank Limited served as Financial Adviser on the transaction.
Tinubu, Edun, Oniha React
President Bola Ahmed Tinubu hailed the successful issuance as evidence of the global financial community’s renewed faith in Nigeria.
“This development reaffirms Nigeria’s position as a credible and recognised participant in the global capital market,” the president said.
Wale Edun, Minister of Finance and Coordinating Minister of the Economy, said the issuance reflected the international community’s sustained confidence in Nigeria’s reform trajectory.
“The strong market access demonstrates investor belief in the administration’s commitment to sustainable and inclusive growth,” Edun noted.
The Director-General of the DMO, Patience Oniha, described the transaction as a major milestone that aligns with President Tinubu’s economic transformation plan.
“Nigeria’s successful return to the Eurobond market to raise long-term funding supports national development and diversifies the country’s financing sources,” she said.
Context
The issuance comes weeks after the president’s Special Adviser on Finance and the Economy, Sanyade Okoli, confirmed plans to raise around $2.3 billion as part of a refinancing drive to stabilise public finances and reduce pressure on domestic borrowing.
The Eurobond success positions Nigeria among Africa’s leading issuers in 2025 and signals strong investor appetite despite global market volatility and recent political headlines.
About the Author
