Nigeria has successfully redeemed a $500 million Eurobond that reached maturity on July 12, 2023, as confirmed by the Debt Management Office (DMO).
Issued in July 2013 with a tenor of 10 years and an annual coupon rate of 6.375 percent, the Eurobond forms part of a dual-tranche USD 1 billion Eurobond, according to a statement published on the DMO’s website.
The DMO emphasized Nigeria’s commitment to meeting its debt service obligations, reaffirming the country’s dedication to honoring its financial responsibilities.
The statement from the DMO further underscored Nigeria’s strong debt management operations and planning, citing the successful redemption of Eurobonds and a diaspora bond over the past six years. This track record serves as a testament to Nigeria’s credibility and ability to manage its debt effectively.
The recent redemption of the $500 million Eurobond follows Nigeria’s prior redemptions, including a $500 million Eurobond in July 2018, another $500 million Eurobond in January 2021, and a $300 million diaspora bond in June 2022.
These redemptions, in addition to the latest Eurobond, bring the total amount of securities redeemed by Nigeria in the international capital market to $1.8 billion.
However, concerns have arisen regarding the Federal Government’s low revenue generation. The reliance on oil as the primary revenue source has proven challenging due to factors such as reduced production and the recent removal of subsidies.
As Nigeria redeems its Eurobond and grapples with revenue generation challenges, the country’s commitment to meeting its debt obligations and implementing sound debt management practices remains at the forefront of its financial operations.
