Nigeria Warming Up for $1.1bn Eurobond Loan Repayment
The Nigerian government is expected to make good on a $1.1 billion Eurobond repayment in November 2025; Fitch Ratings dropped the hint in its latest rating note. The global rating agency said the country experienced minor challenges in servicing its external borrowing in March amidst rising public debt.
This highlighted challenges facing the Nigerian government in managing public finances, according to the rating note. Fitch, however, noted that government external debt service is moderate but expected to rise to USD5.2 billion in 2025 from USD4.7 billion in 2024.
Analysts derived the debt service estimate from USD4.5 billion of amortisations, including a USD1.1 billion Eurobond repayment due in November 2025. Fitch projected debt service to fall to USD3.5 billion in 2026.
The latest update from the Debt Management Office (DMO) showed that Nigeria spent $4.66 billion to service external borrowings in 2024. The amount comprises $2.80 billion in principal repayments, $1.74 billion in interest payments, and $120.13 million in other charges such as fees and commissions, according to Cowry Asset Limited.
Analysts noted that the multilateral bloc received the largest share of repayments ($2.62 billion), followed by commercial lenders ($1.47 billion) and bilateral creditors ($570.67 million), the latter reflecting higher embedded administrative and concessional costs.
The breakdown of Nigeria’s external credit profile indicates that multilateral lenders such as the World Bank, IMF, and African Development Bank remained Nigeria’s primary external creditors with a total of $22.32 billion, representing 48.75% of the external debt.
Bilateral sources—including China, France, and Germany—accounted for $6.09 billion (13.30%), while Eurobonds and other commercial instruments stood at $17.32 billion (37.83%). A negligible portion ($54.87 million) came from syndicated commercial bank loans.
Nigeria Warming Up for $1.1bn Eurobond Loan Repayment Short-term Interest Rates Fall on Robust Banking System Liquidity
