Nigeria’s banking sector is preparing for a significant debt maturity cycle, with Eurobond obligations totaling approximately $2.35 billion due by the end of 2026. According to data on the maturity schedules of five commercial banks, these repayments fall between the fourth quarter of 2025 and fourth quarter of 2026.
Timeline of Eurobond Maturities
The first of these obligations will fall due in October 2025, when First Bank of Nigeria’s $350 million Senior Unsecured Eurobond, issued in 2020, reaches maturity. The bond was the first international debt issuance by a Nigerian bank since 2017 and marked the return of Nigerian financial institutions to the Eurobond market.
Following that, Ecobank Nigeria faces a February 2026 maturity on its $300 million Senior Unsecured Eurobond. In a bid to manage upcoming obligations and reduce interest expenses, the bank recently launched a tender offer to repurchase $150 million of the bond from investors.
Ecobank Seeks Permanent Covenant Removal
Ecobank is also seeking bondholder consent to permanently eliminate the capital adequacy covenant attached to the remaining notes. As an incentive, the bank is offering an early consent fee of $2.50 per $1,000 principal. The covenant, which establishes a minimum capital threshold, had previously been waived until September 30, 2025.
This move comes in the wake of the sharp devaluation of the naira in H1 2024, which significantly impacted Ecobank’s capital adequacy ratio. By June 30, 2024, the ratio had dipped below the 10% regulatory minimum, prompting the bank to obtain a temporary waiver on the covenant’s enforcement from bondholders in August 2024.
Access Bank Faces Dual Eurobond Maturity
Access Bank holds the largest combined exposure, with $1 billion in Eurobond obligations due in the second half of 2026. Its $500 million Senior Unsecured Eurobond—issued at a 6.125% coupon rate—will mature in September 2026, followed a month later by another $500 million Eurobond raised as Additional Tier 1 capital, carrying a 9.125% coupon.
These upcoming repayments will test the bank’s liquidity and capital planning as it balances regulatory compliance with external debt servicing.
Other Maturities: Fidelity Bank and UBA
Fidelity Bank also has a $400 million Senior Unsecured Eurobond maturing in October 2026, with a coupon rate of 7.625%. Similarly, United Bank for Africa (UBA) must settle a $300 million Senior Unsecured Eurobond by November 2026, which carries a 6.75% coupon.
Industry Outlook: Can Banks Manage the Pressure?
Despite the sizeable obligations, analysts suggest Nigerian banks remain in a relatively stable position to meet their commitments. According to Renaissance Capital and Fitch Ratings, the banking sector holds net foreign assets estimated at $7.7 billion—enough to cover the $2.35 billion in maturing Eurobonds without refinancing.
However, the pressure on the sector is building. These external debt maturities are unfolding alongside rising regulatory forbearance exposures and the Central Bank of Nigeria’s (CBN) recapitalization initiative, which aims to boost banks’ resilience through higher minimum capital requirements.
With elevated local funding costs, tighter capital adequacy benchmarks, and the phasing out of COVID-era regulatory leniencies, Nigerian banks face a challenging environment. The coming months will test their ability to restructure balance sheets, manage foreign exchange volatility, and maintain investor confidence.
As the first maturity looms in late 2025, attention will likely shift toward how banks approach these repayments — whether through internal liquidity, debt refinancing, or bondholder negotiations.