Defying global tension, Nigeria has successfully launched a $2.25 billion Eurobond despite U.S. President Donald Trump’s threats. The move signals investor confidence in President Tinubu’s reforms and underscores Nigeria’s growing economic strength on the global stage.
ABUJA, NIGERIA — 2025-11-05 — Nigeria has pressed forward with a landmark $2.25 billion Eurobond issuance, defying a wave of diplomatic controversy sparked by threats from United States President Donald Trump of possible military intervention. The dual-tranche sale, which includes 10-year and 20-year notes priced around 9% yields, marks the country’s largest international debt offering since December 2024 and signals firm investor confidence despite escalating geopolitical tensions.
The issuance, arranged by Chapel Hill Denham, JPMorgan Chase, Citigroup, Standard Chartered, and Goldman Sachs, aims to fund the government’s widening budget deficit. Its success underscores both Nigeria’s resilience in global capital markets and its ability to attract investment in spite of heightened U.S. rhetoric.
Foreign Minister Yusuf Tuggar dismissed Trump’s weekend comments alleging the persecution of Christians in Nigeria, asserting that the claims were “false and inflammatory.” At a press conference in Berlin, Tuggar held aloft a copy of “Nigeria’s Constitutional Commitment to Religious Freedom,” affirming the country’s constitutional guarantees of religious liberty.
“There can't be religious persecution that can be supported in any way, shape, or form by the government of Nigeria,” he said alongside German counterpart Johann Wadephul.
Trump’s threats, posted on his Truth Social account, included warnings of aid withdrawal and possible airstrikes “guns-a-blazing” should Abuja fail to act against extremist violence.
He also labeled Nigeria a “Country of Particular Concern” for alleged religious freedom violations, a designation Nigeria immediately rejected. President Bola Tinubu responded firmly, stating, “Nigeria has constitutional guarantees to protect citizens of all faiths. Religious freedom remains a core tenet of our collective identity.”
Financial markets showed remarkable composure. Nigeria’s 2051 Eurobond, which briefly dipped by 0.5 cents after Trump’s statements, quickly rebounded, trading around 91.05 cents by midweek with yields near 9.14% — well below its April peak of 12.11%.
“The decline appears contained and has partially reversed,” observed Samir Gadio, head of Africa strategy at Standard Chartered in London. Fund manager Kevin Daly of Aberdeen noted that investors are “focusing on Nigeria’s reform story rather than political noise,” while Hasnain Malik of Tellimer dismissed the threats as “a red herring for the investment case.”
Nigeria’s credibility among investors has improved significantly under President Tinubu’s reform agenda. Since taking office in May 2023, Tinubu has dismantled fuel subsidies, introduced comprehensive tax reforms, and adopted a more flexible exchange rate.
These measures prompted Moody’s Ratings to upgrade Nigeria’s sovereign credit rating from Caa1 to B3, citing progress in fiscal stability and external balance. Nigerian equities have risen nearly 65% year-to-date in dollar terms, according to Tellimer data, making the country one of Africa’s best-performing markets in 2025.
Across Africa, governments are taking advantage of improved global liquidity and lower borrowing costs. Kenya, Angola, and the Republic of Congo have each issued Eurobonds in recent months, contributing to a record $245 billion in emerging-market sovereign debt issuance this year. Nigeria’s success reinforces investor appetite for African assets, despite lingering concerns about global interest rates and regional instability.
The diplomatic fallout, however, has expanded beyond Washington. China publicly supported Nigeria’s sovereignty, warning against external interference, while the European Union expressed solidarity with Abuja’s position on religious freedom.
Foreign Minister Tuggar cautioned that inflammatory narratives risk destabilizing the region. “We should not create another Sudan,” he warned, urging restraint and dialogue. Defense Minister General Olemi Oluyede echoed that sentiment, clarifying that Nigeria’s security challenges stem from terrorism, not religion, and that the country remains open to international cooperation “that respects national sovereignty.”
The National Assembly has authorized up to $2.85 billion in additional international borrowing this year, including a planned $500 million sukuk issuance. Nigeria faces two major repayments before year-end: a $1.12 billion Eurobond maturing on November 21 and a ₦100 billion sukuk bond.
Despite the diplomatic storm, the successful bond sale highlights investor confidence in Nigeria’s reform trajectory and fiscal management. Analysts believe the episode demonstrates a key geopolitical reality: while political rhetoric can rattle headlines, economic fundamentals — in Nigeria’s case, improving reserves, fiscal discipline, and reform momentum — continue to anchor global investor sentiment.
Leave a comment
Your email address will not be published. Required fields are marked *
