Nigeria Plans Liquidation of Key Eurobond, Facilities Before 2025 End

Nigeria is making arrangements to settle two significant debt instruments before the close of 2025 — a $1.12 billion Eurobond and a ₦100 billion Sukuk bond — in what officials describe as a strategic move to strengthen fiscal credibility and sustain investor confidence.

The $1.12 billion Eurobond, which carries an interest rate of 7.625%, was issued in November 2018 and is due for repayment on November 21, 2025.

It forms a major part of Nigeria’s external debt portfolio and was initially raised to finance infrastructure projects and support the country’s foreign exchange reserves.

At the time of issuance, the Eurobond drew substantial investor interest despite global financial headwinds, reflecting Nigeria’s ability to attract foreign capital through the international debt market.

In addition, the ₦100 billion (approximately $68.5 million) Sukuk bond — with a 15.743% yield and set to mature on December 28, 2025 — was raised through the FGN Roads Sukuk Company I Plc to fund critical highway projects across the nation.

The Sukuk initiative underscores the Federal Government’s commitment to exploring alternative financing mechanisms, especially those aligned with Islamic finance principles, to diversify funding sources for infrastructure development.

Experts say that meeting these obligations on schedule would not only signal Nigeria’s dedication to responsible debt management but also enhance its credit reputation in global markets, particularly as the government works to balance rising debt service costs with fiscal reforms.