Abuja, Nigeria — Nigeria is gearing up to settle two major debt obligations before the end of 2025, comprising a $1.12 billion Eurobond and a ₦100 billion Sukuk bond, both viewed as key milestones in the country’s ongoing debt management strategy.
The 7.625% Eurobond, issued in November 2018 and maturing on November 21, 2025, forms part of Nigeria’s external borrowing framework aimed at financing infrastructure and shoring up foreign reserves. The bond was oversubscribed at issuance, reflecting investor confidence in Nigeria’s sovereign debt despite global market uncertainties at the time.
Similarly, the 15.743% FGN Sukuk bond, maturing on December 28, 2025, was floated through FGN Roads Sukuk Company 1 Plc to fund key national road projects. The ₦100 billion (approximately $68.5 million) issuance underscores the Federal Government’s commitment to diversifying its funding sources and deepening Islamic finance within the domestic capital market.
When translated into local currency at the prevailing exchange rate of ₦1,465/$, the two maturities together amount to over ₦1.7 trillion, underscoring the scale of Nigeria’s repayment challenge amid mounting fiscal pressures.
Data from the Debt Management Office (DMO) reveal that the Federal Government spent more than ₦5 trillion on debt servicing in the first half of 2025 alone — a figure that highlights the strain on fiscal resources and the growing cost of debt maintenance.
Analysts have raised concerns over how the government plans to meet these upcoming maturities, pointing to the likelihood of refinancing options, new borrowings, or alternative repayment mechanisms as potential strategies to cushion liquidity risks.
Further DMO data show that external debt servicing remains a significant burden, with Nigeria spending $2.32 billion (₦3.4 trillion) on foreign debt payments between January and June 2025. The International Monetary Fund (IMF) and Eurobond investors accounted for nearly 65% of these repayments, totaling $1.5 billion (₦2.197 trillion) within six months.
The IMF emerged as Nigeria’s single largest creditor, receiving $816.3 million (₦1.195 trillion) — about 35.2% of the total external debt service outflows.
With the twin maturities of the Eurobond and Sukuk bonds approaching, Nigeria’s debt management strategy will face a critical test of both its fiscal discipline and its ability to balance debt sustainability with economic growth imperatives.
