The Federal Government has commenced preparations for its first Eurobond issuance since November 2025, signaling Nigeria’s return to the international capital market. This move follows a previous Eurobond issuance that attracted demand worth more than five times the amount offered.
According to a circular from the Debt Management Office (DMO), the Federal Government is seeking to appoint Transaction Advisers (TAs) through an open competitive bidding process. The DMO stated that it is looking for qualified advisers to facilitate a potential Eurobond transaction in the international capital market.
Reputable banks and firms across various advisory categories have been invited to submit Expressions of Interest (EOI) and prequalification documents. Banks and law firms have until July 13 to submit their proposals to the DMO.
This proposed Eurobond issuance is intended to complement Nigeria’s broader external financing strategy, as the government aims to diversify funding sources and manage its debt profile. The planned issuance follows Nigeria’s recent $5 billion Total Return Swap (TRS) financing arrangement with First Abu Dhabi Bank PJSC.
Nigeria has already accessed approximately $1.5 billion from this facility in recent weeks. The government has indicated that external borrowings are intended to support budget financing and refinance existing obligations.
The country returned to the international debt market in November 2025, raising $2.35 billion through a dual-tranche Eurobond issuance. That offering consisted of 10-year and 20-year dollar-denominated bonds, with investor demand significantly surpassing the amount offered.
Nigeria’s improving sovereign credit profile could bolster investor interest in any upcoming Eurobond issuance. Last month, S&P Global Ratings upgraded Nigeria’s sovereign credit rating by one notch to ‘B’, which was the country’s first ratings upgrade by the agency in 14 years.
S&P Global Ratings cited higher oil prices, improved domestic refining capacity, and exchange-rate reforms as key drivers behind the upgrade. This improved credit outlook may strengthen Nigeria’s access to international capital markets and potentially lower borrowing costs for future external debt issuances.
