Nigeria’s return to the international capital market defied political headwinds yesterday, as its $2.35 billion Eurobond issuance attracted orders worth $13 billion, representing an oversubscription by 453 percent or $10.65 billion.

This comes despite United States President Donald Trump’s designation of the West African country as a “Country of Particular Concern” over alleged widespread killings of Christians, rising religious intolerance, and his further threat of military action if the government fails to curb the violence. The strong investor appetite signals renewed global confidence in Nigeria’s economic reforms trajectory and resilience amid rising geopolitical tension.

According to a statement from the Debt Management Office (DMO), the Federal Republic of Nigeria successfully priced $2.35 billion Eurobonds maturing in 2036 (Long 10-year) and 2046 (Long 20-year) in the international capital markets, with US$ 1.25 billion and US$ 1.10 billion placed in the 2036 and 2046 maturities, respectively.

The Long 10-year bond and the Long 20-year Notes were priced at Coupons / Yields of 8.625 per cent and 9.125 per cent, respectively, the statement added.

“Nigeria is pleased to have attracted a wide range of investors from multiple jurisdictions including the United Kingdom, North America, Europe, Asia, Middle East and participation from Nigerian investors, which it views as an expression of continued investor confidence in the country’s sound macro-economic policy framework and prudent fiscal and monetary management.

“The transaction attracted a peak order book of over US$13 billion, marking the largest ever order book achieved by the Republic. This significant milestone underscores the strong support for the transaction across geography and investor class.

“With respect to investor class, demand came from a combination of Fund Managers, Insurance and Pension Funds, Hedge Funds, Banks and other Financial Institutions,” the statement added.

In his remarks on the transaction, President Bola Ahmed Tinubu, stated that: “We are delighted by the strong investor confidence demonstrated in our country and our reform agenda. This development reaffirms Nigeria’s position as a recognized and credible participant in the global capital market.”

According to the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, “This successful market access demonstrates the international community’s continued confidence in Nigeria’s reform trajectory and our commitment to sustainable, inclusive growth.”

In her remarks, the Director-General of the DMO, Patience Oniha stated: “Nigeria’s ability to access the Eurobond Market to raise long term funding needed to support the growth agenda of President Bola Ahmed Tinubu is a major achievement for Nigeria and is consistent with the DMO’s objectives of supporting development and diversifying funding sources.”

The Notes would be admitted to the official list of the UK Listing Authority and available to trade on the London Stock Exchange’s regulated market, the FMDQ Securities Exchange Limited and the Nigerian Exchange Limited.

The proceeds from this Eurobond issuance will be used to finance the 2025 fiscal deficit and support the government’s other financing needs.

Nigeria mandated Chapel Hill Denham, Citigroup, Goldman Sachs, J.P. Morgan and Standard Chartered Bank as Joint Bookrunners. FSDH Merchant Bank Limited acted as Financial Adviser on the issuance.

The federal government had last month approved plans to raise as much as $2.3 billion, along with a proposal to refinance $1.1 billion of dollar debt that matures later this month.

The offering is the first since the country accessed the market in December. Yesterday’s sale was briefly delayed after Trump’s threat against Islamist militants in the country. Trump had also threatened to cut off US aid.

Oniha recently explained that the federal government’s proposed $2.35 billion external borrowing plan was a strategic mix of new financing for the 2025 budget and a proactive measure to refinance maturing Eurobonds.

“In terms of what we need, it’s $2.3 billion,” she said.

She explained that “The 2025 budget has new N1.8 trillion in new external borrowing. That’s $1.2 billion. Then there’s $1.118 billion, maturing by end of November. So we want to issue Eurobond to redeem that one.”

According to her, the refinancing of maturing Eurobonds through fresh borrowing was standard practice in international debt markets and helps Nigeria avoid default while maintaining investor confidence.

“It happens, it’s not unusual. These countries that have done it include: Kenya – $1.5 billion in Feb 2024 to refinance a $2 billion, Cameroon – $550 million in July 2024, Gabon – $570 million in Feb 2025, Angola – $1.75 billion in Oct 2025. And we have disclosed that upfront. There’s no hiding it.”

Minister of Foreign Affairs, Yusuf Tuggar, said on Wednesday that the Nigerian government was “engaging” with the Trump administration to explain its constitutional protection of religious freedoms and its efforts to combat Islamist attacks. (THISDAY)