The naira appreciated on Thursday as Nigeria’s external reserves are seen climbing to a seven-year high of $46.07 billion, following the successful issuance of Eurobonds that attracted an overwhelming subscription of more than $13 billion.
The last time Africa’s largest economy recorded a comparable reserve level was on August 24, 2018, when it stood at $46.09 billion.
Data published by the Central Bank of Nigeria (CBN) showed that the naira closed at N1,436.74, gaining N1.75 or 0.12 percent compared to N1,438.49 quoted on Wednesday at the NFEM.
However, the local currency depreciated in the parallel market also known as the black market, losing N20 as the dollar was quoted at N1,480 on Thursday as against N1,460 quoted on Wednesday.
Adebowale Funmi, head of Research at Parthian Securities, said Nigeria’s Eurobond oversubscription by over 400 percent reflects strong investor confidence in the country’s economic outlook. This renewed optimism is largely driven by ongoing reforms and Nigeria’s recent removal from the FATF grey list, both of which have improved the country’s credibility and perception in global markets.
She said the successful issuance will help boost external reserves, and support debt refinancing, though it also adds to external debt obligations.
According to the latest data from the CBN, the country’s external reserves have maintained a steady upward trend, rising to $43.27 billion as of November 4, 2025. This reflects sustained growth from $37.8 billion in June to $42.9 billion in October 2025, driven by increased oil receipts, inflows from multilateral institutions, and renewed portfolio investments.
Analysts at FSDH Merchant Bank Research noted that the current build-up strengthens the CBN’s capacity to stabilise the foreign exchange (FX) market and signals a firmer external buffer position. They, however, cautioned that sustaining this growth will depend on Nigeria’s progress in export diversification, fiscal discipline, and the evolving global economic environment.
Nigeria’s latest $2.35 billion Eurobond issuance, which includes 10-year and 20-year tranches, marked the largest orderbook in the country’s history, highlighting renewed investor confidence in its macroeconomic and fiscal reforms.
The Debt Management Office (DMO) said the transaction, which closed on Wednesday, attracted orders exceeding $13 billion from investors across the United Kingdom, North America, Europe, Asia, and the Middle East.
The 10-year $1.25 billion bond maturing in 2036 was priced at a coupon of 8.6308 percent, while the 20-year $1.10 billion note due in 2046 carried a coupon of 9.1297 percent. The DMO also disclosed that Nigerian investors participated in the offer, underscoring domestic support for the government’s reform agenda.
Ayodele Akinwunmi, Chief Economist at United Capital Plc, speaking on Nigeria’s successful Eurobond issuance, said the development reflects growing investor confidence in the government’s economic management.
“It means one thing, confidence in the Nigerian government,” he said. “the strong subscription to the Eurobond shows that confidence is returning. This is just the beginning, and it demonstrates that things are improving. We are already seeing the results, GDP is growing, exchange rate is stable, and interest rates are coming down. These positive indicators show that the economy is moving in the right direction.”
Analysts at Comercio Partners described the Eurobond issuance as a strong reaffirmation of investor confidence despite a tense global geopolitical backdrop. They noted that while the inflows will bolster reserves, provide fiscal breathing room, and strengthen Nigeria’s capacity to meet short-term obligations, the move also increases exposure to foreign exchange risk and heightens interest burdens in hard currency.
They added that with the Central Bank’s ongoing efforts to unify the FX market and clear outstanding backlogs, actions that have temporarily restored investor confidence, maintaining currency stability will remain critical to sustaining these gains.
Omobola Adu, macroeconomist and fixed income analyst at CSL Stockbrokers, said that in the last 8 months, there’s been so much interest in Nigeria Eurobonds, due to the underlying economics being positive, interest rates, credit ratings, and all that.
“In terms of initial pricing guidance (yield), the rate at which the yield was issued indicates demand interest, which helped to compress yield,” Adu said.
He explained that the current 10-year yield (FGN 2034) is priced at 8.6 percent as of yesterday, which is similar to the fresh 10-year dollar bond issued on Wednesday. Adu said on the refinancing, they will likely use the proceeds of a 20-year bond to refinance.
Mohammed Sani Abdullahi, deputy governor in charge of Economic Policy at the CBN, disclosed at the World Bank and IMF Annual Meetings that the Federal Government plans to issue Eurobonds worth about $2.3 billion later this year. He explained that the issuance would partly refinance a $1.18 billion Eurobond maturing in November while also strengthening Nigeria’s external reserves and investor confidence. “We plan to issue Eurobonds of up to about $2.3 billion, which will also help refinance the $1.18 billion Eurobond maturing in November,” he said.
