Nigeria plans to issue $1.7 billion Eurobond to fund 2024 budget 

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed this on Thursday at the State House in Abuja.

Edun also revealed that the government intends to issue Islamic Sukuk bonds to raise an additional $500 million as part of its international money market instruments to generate capital.

The 2024 budget of N28.7 trillion (approximately $17 billion) includes a projected deficit of N9.1 trillion ($5.2 billion), which would be financed through borrowing.

While Edun did not announce the issuance dates for the foreign bonds, he stated that authorities are working to submit the borrowing plan to the National Assembly this year, with the aim of securing approval “as soon as possible.” 

He noted that the new borrowing “is part of the Nigerian 2024 Appropriation Act as amended.” 

Earlier this year, Nigeria raised about $900 million in its first domestic sale of dollar-denominated bonds.

The proposed Eurobond aims to raise capital for the country and reintroduce Nigeria to the international debt capital markets.

However, this also implies a potential increase in Nigeria’s external debt, currently estimated at $42.9 billion, which constitutes approximately 39% of the country’s total debt stock.

In September, Nigeria issued its first $500 million domestic foreign currency-denominated bonds, which were oversubscribed to $900 million.

The Minister of Finance Wale Edun then said that the country would not issue a Eurobond, citing concerns that such a move could expose Nigeria’s volatile dollar securities to higher debt costs.