OFFICIAL: Nigeria has no plans to issue Eurobonds in 2023: Zainab Ahmed


Nigerian Finance Minister Zainab Ahmed has confirmed that the government has no plans to issue Eurobonds in 2023.

She revealed this on Wednesday while answering questions about Nigeria’s Eurobond borrowing plans.

In exchange for Eurobonds, Zainab Ahmed insists, Nigeria will focus on concessional loans from entities such as the World Bank, the ADB or the Islamic Bank.

What Zainab Ahmed says

  • “Our sources of external loans are very open in the multilateral institutions… and our focus is on those loans unless we have no other option because the loan processes are very long.”
  • “Bond prices are too high right now in most African countries. No one comes close now. We expect 2023 to bring some improvements.”

Nigeria’s budget for 2023 includes an external borrowing requirement of about N1.76 trillion (dollar equivalent).

The news continues after this announcement.

Higher Yields: The yield on the $1.5 billion Nigerian Eurobonds due February 2031 rose to 14.29% on July 12, 2022, according to data from the Debt Management Office.

  • The 5-year Eurobond dated November 2027 with a coupon of 6.5% closed the month of October at a price of $71.39 with a return of 14.45%. The 10-year Eurobond dated February 2032 with a coupon of 7.87% closed the month of October at a price of $64.7 with a return of 14.45%.
  • Nevertheless, The aforementioned 5-year Eurobond rose to $80 per $100 nominal price, while the 10-year Eurobond rose to $77.26 per $100 nominal price in November, according to data tracked by Nairametrics.
  • Despite this, the minister believes that yields remain high and a disincentive to further borrowing.

Update on Eurobonds: Nigeria currently has a total Eurobond loan of around $15 billion spanning different tenures and coupons. The issuances are around 8 and the last one was a Eurobond of 1.250 million dollars issued at the beginning of this year.

The news continues after this announcement.

  • Nigeria has a total public debt of $151 billion according to Nairametrics research and includes the central bank’s Was and Means loan of roughly N20 trillion.
  • Nigeria is budgeting a total budget deficit of N10.78 trillion by 2023 which is 4.78% of GDP.
  • Deficit financing includes loans from domestic sources of N7.04 trillion and from foreign sources of N1.76 trillion.

2023 Elections: These plans may change if the new government decides to go in a different direction in 2023.


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