Nigerian Banks Face $1.7bn Eurobonds Repayment
Nigerian deposit money banks with exposure to foreign loans are expected to settle $1.7 billion Eurobonds that will expire in 2026, according to a non-rating commentary note released by Fitch.
A significant improvement in the Nigerian banking sector’s foreign-currency (FC) liquidity has reduced refinancing risks associated with USD1.7 billion of bank Eurobonds maturing or callable in 2026, Fitch Ratings says.
Fitch expects strong foreign exchange inflows into Nigeria to continue to support the sector’s FC liquidity coverage.
It said the naira devaluation in 2023–2024 and reforms to reduce market distortions led to higher foreign-exchange market volumes, improving Nigerian importers’ access to FC and reducing their reliance on the banking sector for FC financing.
Nigeria’s gross foreign reserves reached USD46.3 billion at the end of January 2026, up from a low of USD32.2 billion in April 2024. This has helped the Central Bank of Nigeria clear its backlog of overdue verified foreign-exchange forwards and settle many of its foreign-exchange swaps with local banks.
Fitch said that, against this background, Nigerian banks have been able to pay down their correspondent banking lines and rebuild their placements at foreign banks.
The banking sector has returned to a substantial net foreign asset position, reaching USD11 billion at the end of the third quarter of 2025 from a net foreign liability position of USD2.6 billion at the end of 2022.
According to Fitch, there has also been a corresponding improvement in FC liquidity coverage metrics. It added that the sector’s improved FC liquidity should provide banks with greater flexibility to address upcoming bond maturities, thereby reducing refinancing risk.
Fitch-rated banks with maturing or callable Eurobond debt have sufficient FC liquid assets to redeem the bonds without the need for refinancing, the non-rating commentary note hinted.
Senior unsecured bonds issued by Access Bank Plc with USD500 million principal amount, Fidelity Bank PLC (USD400 million), and United Bank for Africa Plc (USD300 million) mature between September and November 2026.
Access Bank also has a USD500 million additional Tier 1 instrument that becomes callable in October 2026. Fitch said the instrument is large, equivalent to 7.6% of bank-solo risk-weighted assets as of end-3Q25.
Access Bank’s bank-solo capital adequacy ratio (CAR) of 16.5% at the end of 3Q25 (excluding unaudited 3Q25 profit) was also only slightly above the minimum regulatory requirement of 15%.
However, Access Bank has since raised Tier 2 capital and plans to further strengthen its bank-solo CAR ahead of the initial call date through internal capital generation and the optimisation of risk-weighted assets.
Ecobank Nigeria Limited completed two tender offers in 2025, redeeming a combined USD 245 million of its USD 300 million senior unsecured bond ahead of its 16 February 2026 maturity date. It repaid the remaining USD 55 million at maturity.
The bank’s foreign-currency liquidity is very tight by domestic standards, but Fitch views it as sufficient to continue servicing its liabilities (mainly deposits). Nigeria’s Inflation-Protected Bond Yield Drops to 15.4%
