The Nigerian government plans to issue Eurobonds worth about $2.25 billion later this year, according to Mohammed Sadi Abdullahi, Deputy Governor in charge of Economic Policy at the Central Bank of Nigeria (CBN).
Abdullahi disclosed this on Wednesday at the ongoing World Bank and International Monetary Fund (IMF) Annual Meetings in Washington D.C., noting that the issuance will partly refinance a $1.18 billion Eurobond maturing in November while also strengthening Nigeria’s external reserves and investor confidence.
“We plan to issue Eurobonds of up to about $2.3 billion, which will also help refinance the $1.18 billion Eurobond maturing in November. We’ll continue engaging investors to ensure the structure works well for both sides in terms of pricing and liability management,” Abdullahi said.
He added that one of the objectives of the Investor Forum held during the meetings was to engage stakeholders ahead of the planned issuance to align expectations and strengthen trust.
“For the 2025 fiscal year, our domestic borrowing programme is almost complete, with all securities fully subscribed. We’re grateful for investors’ confidence in the Nigerian story,” he noted. “Looking ahead, we expect to approach the international capital market later this year, subject to market conditions and transaction adviser guidance.”
Liquidity and Inflation Control
On liquidity management, Abdullahi explained that the Monetary Policy Committee (MPC) recently raised the Cash Reserve Ratio (CRR) on public sector non-TSA deposits to 75 percent, following a surge in public liquidity inflows into the banking system.
“That policy tool has helped us absorb much of the excess liquidity, which is why you might not be seeing frequent Open Market Operations (OMOs). We now have a more targeted approach, and this has contributed significantly to our control of money supply growth and inflation,” he said.
According to the CBN, these coordinated fiscal and monetary measures are intended to stabilize the macroeconomic environment, reduce investor risk, and enhance Nigeria’s global capital market appeal.
Tax Reforms and Investor Confidence
The Deputy Governor also confirmed that discussions with fiscal authorities on capital gains tax (CGT) adjustmentswere in advanced stages, amid concerns from foreign investors about proposed tax increases.
“On the capital gains tax issue, discussions with fiscal authorities are in advanced stages, and an announcement will be made soon once conclusions are reached,” Abdullahi stated.
Market observers have warned that Nigeria’s plan to raise CGT for foreign equity investors from 10% to 30% could trigger capital flight, though authorities say the policy is part of a broader reform to enhance fairness and transparency.
Speaking at the same forum, Sanyade Okoli, Special Adviser to the President on Finance and the Economy, said the reforms were crafted based on investor feedback and designed to reduce uncertainty.
“We’ve ensured that losses can now be offset against gains, reducing investor risk. We’ve also improved corporate tax deductions for VAT and capital expenditure, which enhance overall profitability,” Okoli explained.
She emphasized that the revised CGT framework exempts small investors and low-income earners, while larger investors contribute more in line with global best practices.
“Our goal is a balanced, transparent, and globally consistent system that encourages investment while ensuring fairness,” she added.
Outlook
With its domestic borrowing nearly completed and inflationary pressures gradually stabilizing, Nigeria’s move to the Eurobond market signals renewed confidence in its external financing strategy.
Analysts say the success of the Eurobond issuance will depend on market conditions, global interest rate trends, and Nigeria’s ongoing economic reforms, particularly in exchange rate unification, tax policy, and debt transparency.
Sidebar Analysis: What Nigeria’s Eurobond Plan Means for the Economy and the Naira
Nigeria’s decision to issue a $2.25 billion Eurobond comes at a delicate time for the economy. The move aims to shore up foreign reserves, rebuild market confidence, and stabilize the naira, which has faced persistent pressure despite ongoing foreign exchange reforms.
If successful, the Eurobond sale could signal to global investors that Nigeria is regaining fiscal discipline and reestablishing credibility in international capital markets. The proceeds will not only refinance maturing debt but also provide a buffer for import financing and external payment obligations.
However, analysts caution that while Eurobonds offer short-term relief, they increase external debt exposure and future repayment risks if export earnings fail to recover. The key test for the Tinubu administration will be ensuring that proceeds are used productively — for infrastructure, industrialization, and revenue diversification — rather than for recurrent spending.
Ultimately, investor response will depend on Nigeria’s ability to sustain reforms, tame inflation, and maintain transparency in debt management.
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Reporting by Godwin Okafor, The Naija247news in Lagos, Nigeria.
