The Nigerian government has disbursed approximately $2.93 billion to cover Eurobond debt obligations over eight quarters since President Bola Tinubu took office, based on external debt records released by the Debt Management Office (DMO).
Spanning from the third quarter of 2023 through the second quarter of 2025, these Eurobond payments represented 31.5 percent of the nation’s overall external debt servicing total of $9.32 billion during the period.
A key highlight is the dominance of interest expenses, which totaled $2.43 billion—accounting for 83 percent of the Eurobond outlays—leaving just a fraction for principal reduction. This underscores the high costs associated with reliance on market-based international borrowing and points to sustained pressure on public finances in the coming years.
President Tinubu’s administration began in May 2023, with Q3 2023 marking the initial full quarter. That period saw the highest Eurobond expenditure, driven by a bond maturity. Nigeria settled $943.66 million in total, including $500 million in principal repayment and $443.66 million in interest. This made up 67.8 percent of the quarter’s $1.39 billion external debt servicing—the largest proportion under the current leadership.
The following quarter, Q4 2023, experienced a steep decline with no principal due. Payments dropped to $148.57 million, entirely interest, comprising only 15.8 percent of the $943.17 million total external servicing.
Eurobond costs began rising again in Q1 2024, reaching $282.57 million in interest against a $1.12 billion overall external bill, or 25.2 percent. The upward trend continued into Q2 2024 with $293.73 million in interest, equating to 26.2 percent of the same $1.12 billion total.
A notable increase occurred in Q3 2024, where $427.72 million—all interest—was paid, pushing Eurobonds to 31.9 percent of the $1.34 billion quarterly external servicing. This aligns with recurring patterns in coupon payment schedules for Q3 periods.
Relief came temporarily in Q4 2024, similar to the prior year, with $148.57 million in interest and a 13.8 percent share of the $1.08 billion total—the lowest in the reviewed timeframe.
The cycle repeated in Q1 2025 with another $427.72 million surge in interest, representing 30.7 percent of $1.39 billion in external servicing. In the latest reported quarter, Q2 2025, payments eased to $260.07 million (all interest), making up 27.9 percent of $932.10 million.
Across the era, only $500 million of the $2.93 billion went toward principal, emphasizing that interest dominates repayments. Quarterly Eurobond shares fluctuated from 13.8 percent to 67.8 percent of total external obligations.
As of June 2025, Nigeria’s outstanding Eurobonds stood at $17.32 billion, or 36.86 percent of external debt, up from $15.62 billion (36.19 percent) in June 2023. This $1.70 billion growth reflects a 10.88 percent rise in exposure to costly commercial loans.
In recent developments, the government secured approval in September for a $2.3 billion Eurobond issuance under its 2024–2025 borrowing strategy, including $1.1 billion for refinancing. By November, it successfully raised $2.35 billion via a dual-tranche offering that drew $13 billion in orders—the highest on record.
The issuance included a $1.25 billion note maturing in 2036 at 8.63 percent yield and a $1.10 billion note due in 2046 at 9.13 percent, aimed at addressing the 2025 budget gap and diversifying funding amid economic reforms.
