The Nigerian government plans to issue Eurobonds worth about $2.25 billion later this year, according to Mohammed Sadi Abdullahi, deputy governor in charge of Economic Policy at the Central Bank of Nigeria (CBN).
The issuance would partly refinance a $1.18 billion Eurobond maturing in November while also strengthening Nigeria’s external reserves and investor confidence, Abdullahi revealed Wednesday at the ongoing Annual Meetings of the World Bank and International Monetary Fund (IMF) in Washington D.C.
“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. We’ll continue engaging investors to ensure the structure works well for both sides in terms of pricing and liability management,” he said.
He noted that one of the key objectives of the Investor Forum held in Washington DC was to engage with stakeholders ahead of the planned Eurobond issuance to align expectations and strengthen trust.
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“One of the reasons we hold this session is to engage investors before we go to market. For the 2025 fiscal year, our domestic borrowing programme is almost complete, with all securities fully subscribed. We’re grateful for investors’ confidence in the Nigerian story. Looking ahead, we expect to approach the international capital market later this year, subject to market conditions and transaction adviser guidance,” Abdullahi explained.
On liquidity management, the CBN deputy governor said the recent Monetary Policy Committee (MPC) decision was informed by data showing a surge in public sector liquidity entering the banking system. He revealed that the MPC responded by imposing a 75 percent Cash Reserve Ratio (CRR) on public sector, non-Treasury Single Account (non-TSA) deposits – a move aimed at stabilising the financial system and controlling inflation.
“That policy tool has helped us absorb much of the excess liquidity, which is why you might not be seeing frequent Open Market Operations (OMOs). We now have a more targeted approach, and this has contributed significantly to our control of money supply growth and inflation,” Abdullahi further said.
Through these coordinated fiscal and monetary measures, the Nigerian government aims to reduce investor risks, enhance profitability, and strengthen macroeconomic stability while positioning the country as an attractive destination for global capital inflows ahead of its upcoming Eurobond issuance.
He assured participants that discussions with fiscal authorities on capital gains tax adjustments were in advanced stages.
“On the capital gains tax issue, discussions with fiscal authorities are in advanced stages, and an announcement will be made soon once conclusions are reached,” Abdullahi said.
His comments follow concerns from market watchers after reports emerged that Nigeria planned to triple capital gains tax (CGT) for foreign equity investors, raising fears that the move could trigger a sell-off in the country’s stock market, which has gained almost 40 percent this year.
Under the new provision, foreigners will face a 30 percent CGT on the sale of Nigerian shares from January unless the proceeds are reinvested in other listed or unlisted domestic equities. The adjustment, which forms part of a new tax framework, increases the CGT for foreign investors from the current 10 percent rate, which has not been widely enforced in practice.
Raising investor confidence
Meanwhile, the federal government also revealed that it has offset its losses on capital, reduced investor risks, and improved corporate tax deductions for Value Added Tax (VAT) and capital expenditure, in a move designed to enhance overall profitability and investor confidence in the Nigerian economy.
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This was disclosed by Sanyade Okoli, special adviser to the President on Finance and the Economy, who represented the finance minister during the Investors’ Forum.
Okoli explained that the government’s recent fiscal reforms have been carefully designed to make the investment climate more transparent, competitive, and equitable for both local and foreign investors.
“We’ve also ensured that losses can now be offset against gains, reducing investor risk. In addition, we’ve improved corporate tax deductions for VAT and capital expenditure, which enhance overall profitability,” Okoli said.
She noted that the reforms were driven by investor feedback, especially around capital gains tax concerns, which had previously generated uncertainty among market participants.
“On the capital gains tax concern, we’re aware of investor feedback. The reform was designed to make the system more transparent and equitable. Previously, there were legal disputes about whether certain proceeds were income or capital gains. We’ve clarified that and also made the tax progressive, so small investors and low-income earners are exempt, while higher earners contribute more. Our goal is a balanced, transparent, and globally consistent system that encourages investment while ensuring fairness,” she said.
