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Nigeria’s return to the international debt market with a new Eurobond offer is expected to boost the naira and foreign currency reserves, which is positive for macro-economic stability.
Investors’ appetite for the Eurobond was strong, with total bids exceeding $12.7 billion (excluding joint lead managers’ participation), translating to an impressive 5.5x bid-to-offer ratio.
“This development bodes well for foreign exchange (FX) dynamics, particularly in supporting reserves accretion and Naira appreciation. We project 2025 FX reserves to reach $45.0 billion by the end of the year,” Cardinal Stone Partners analysts said.
“The robust demand at the auction indicates that investors are confident in Nigeria’s macroeconomic narrative.”
Nigeria’s gross foreign exchange reserves rose to $43.27 billion dollars as of November 5th, 2025.
The offered amount was raised across 10-year (Jan-2036) and 20-year (Jan-2046) tenors, with coupons of 8.62% and 9.13% set, respectively.
Nigeria joins Kenya and Angola in raising foreign-currency debt from Africa this year, as resilient global growth and expectations of more interest-rate cuts from the US dialed up investor appetite for riskier assets globally, including high-yield sovereign bonds.
Credit rating upgrades from major agencies contributed to this confidence, reflecting a perceived decline in Nigeria sovereign risk and a bolstering of the country’s credibility in the global debt market.
“We expect a portion of the proceeds to be channeled towards refinancing maturing Eurobonds of $1.1 billion on 21st of November 2025 and bridging potential budgetary shortfalls. To wit, we estimate the 2025 year-end debt level at N166.7 trillion (42.2% of GDP),” Cardinal Stone Partners said.
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