The request, recently sent by President Bola Tinubu to the National Assembly, includes $1.229 billion (₦1.843 trillion at ₦1,500/$) in new external loans to support the 2025 Appropriation Act, alongside $1.118 billion to redeem Eurobonds issued in 2018 that will mature in November 2025.
“Yes, it’s two components,” Oniha told BusinessDay. “The 2025 budget has new ₦1.8 trillion in new external borrowing — that’s about $1.2 billion. Then there’s $1.118 billion, maturing by end of November. So, we want to issue a Eurobond to redeem that one.”
She explained that refinancing maturing Eurobonds with new issuances is a standard practice in global debt markets, allowing countries to maintain liquidity, avoid default, and preserve investor confidence.
“It happens, it’s not unusual,” she said. “Other countries have done it — Kenya raised $1.5 billion in February 2024 to refinance a $2 billion bond, Cameroon $550 million in July 2024, Gabon $570 million in February 2025, and Angola $1.75 billion in October 2025. We’ve disclosed ours upfront; there’s no hiding it.”
Funding through multiple channels
President Tinubu indicated that the funds could be raised through a variety of instruments in the international capital market — including Eurobonds, syndicated loans, bridge financing, or direct borrowing from multilateral lenders.
Oniha noted that the shift towards heavier domestic borrowing in recent years stemmed from global market disruptions caused by the COVID-19 pandemic.
“Before COVID, it was 50-50 between external and domestic borrowing,” she said. “But in 2020, the international markets were closed. If you didn’t have a local market to borrow from, how would you fund your deficits?”
She emphasised that while the government continues to rely on the domestic market, it remains open to concessional financing from development partners.
“We’re taking all the concessional funds, but it’s not enough,” Oniha added. “If you check our external debt stock, you’ll see the World Bank, IMF, and others — they still account for over 40 percent.”
Eurobond impact and market expectations
Nigeria’s planned Eurobond issuance — part of the $2.35 billion borrowing plan — is expected to have ripple effects on the foreign exchange market and external reserves. Analysts suggest that the inflow could strengthen the naira and improve liquidity in the near term.
The naira has already shown signs of stability, appreciating 4.5% year-to-date to ₦1,475.35/$ as of October 17, 2025, from ₦1,541.36/$ at the start of the year, according to Central Bank of Nigeria (CBN) data. Similarly, Nigeria’s external reserves have grown by $1.8 billion, or 4.4%, reaching $42.68 billion on October 16, 2025, up from $40.88 billion in January.
Ayokunle Olubunmi, Head of Financial Institutions Ratings at Agusto & Co., noted that the proposed Eurobond is “largely aimed at refinancing maturing obligations,” which will help cushion the impact on reserves and ease concerns around exchange rate stability.
Echoing this view, Adebowale Funmi, Head of Research at Parthian Securities, said the Eurobond issuance will have “mixed implications” for the economy.
“In the short term,” she explained, “the inflow of funds will boost Nigeria’s reserves and support the naira by improving FX liquidity, which can help the CBN stabilise the market. On the fiscal side, the proceeds will help finance part of the 2025 budget and refinance maturing debt, reducing immediate repayment pressure and easing domestic borrowing needs.”
However, Funmi cautioned that while the issuance offers short-term relief, it adds to Nigeria’s external debt and debt service burden, heightening exposure to exchange rate risks. “A successful issuance could signal investor confidence,” she said, “but it also underscores the urgent need for stronger revenue mobilisation and fiscal reforms to ensure long-term debt sustainability.”
Looking ahead
As Oniha and her team prepare to approach the global capital market, she reiterated that timing will depend on market conditions and transaction adviser guidance.
“We expect to approach the international capital market later this year,” she said. “We’ll continue engaging investors to ensure the structure works well for both sides in terms of pricing and liability management.”
With Nigeria’s borrowing strategy now balancing fiscal funding with debt rollover needs, the upcoming Eurobond issuance is being closely watched as a test of investor appetite — and of the government’s ability to navigate a fragile but improving macroeconomic environment.