Finance

CardinalStone Partners Limited has reiterated its confidence in Nigerian Breweries Plc (NB), maintaining a “Buy” recommendation while raising the target price to N82.83, up from N67.00 previously. The upward revision follows the brewer’s nine-month financial performance and growing optimism about a rebound in 2026, supported by improving sales volumes, cost optimization, and a more stable macroeconomic environment.

According to the investment firm, Nigerian Breweries’ earnings are poised for stronger growth in the coming year, particularly as the company moves past the one-off impairment charges and foreign exchange challenges that constrained performance in 2025. “After a two-year hiatus in dividend payments caused by macroeconomic headwinds, the company’s recovery trajectory suggests a likely return to dividend payouts by full year 2026,” CardinalStone noted in its report.

Stronger Margins and Earnings Outlook

CardinalStone analysts anticipate that Nigerian Breweries will experience improved profitability in the next fiscal year as cost pressures begin to ease. During the third quarter of 2025, the brewer’s cost of goods sold (COGS) increased to 66.2%, largely due to higher input and energy costs driven by inflation and foreign exchange volatility.

Despite these challenges, the firm maintains that Nigerian Breweries’ operational efficiency, wide distribution network, and strong brand equity will help sustain its financial resilience. For the 2025 financial year, the firm revised its gross, EBIT, and net margins downward to 40.0%, 16.3%, and 8.7%, respectively, due to the temporary cost spikes. However, these are projected to rebound to 40.5%, 16.7%, and 9.4% in 2026 as input prices normalize and sales volumes recover.

Revenue is forecast to reach N1.88 trillion in 2026, reflecting both higher sales and effective cost management initiatives. The company’s continued focus on expanding its product portfolio and strengthening its market presence across Nigeria’s diverse consumer segments is expected to play a key role in driving these gains.

Operational Efficiency and Liquidity Strength

Nigerian Breweries’ liquidity position remains robust, with analysts highlighting its efficient cash management practices and supplier relationships as major strengths. The company’s cash conversion cycle has benefited from favorable credit terms and disciplined working capital management, both of which have contributed to its operational stability.

CardinalStone expects payable days to remain strong, underscoring NB’s strong bargaining power with suppliers and its ability to maintain cost discipline despite inflationary pressures. This operational rigor, combined with improved earnings, is likely to enhance the brewer’s liquidity profile heading into 2026.

Dividend Resumption on the Horizon

Perhaps the most encouraging signal for investors is the potential return of dividends in 2026. Following two years of suspended payouts—triggered by sharp naira devaluation and spiraling inflation between 2023 and 2024—Nigerian Breweries’ retained earnings are now on the path to recovery.

As of the first nine months of 2025, the brewer reported a negative retained earnings balance of N85.5 billion, a significant improvement from N169.7 billion in December 2024. CardinalStone projects that by the end of 2026, retained earnings could turn positive, closing at N32.2 billion, assuming a 60% dividend payout ratio.

This turnaround would mark a pivotal milestone for the company, signaling restored investor confidence and a return to normalcy after a challenging period marked by foreign exchange losses and rising production costs.

Balance Sheet Stability and Growth Prospects

Nigerian Breweries’ total equity rose by 17.8% to N546.5 billion, while total assets stood at N1.11 trillion, only slightly down by 2.4% from the previous year. Its property, plant, and equipment remain a key component at N564 billion, while inventories—valued at N224.1 billion—continue to represent a large portion of total assets.

CardinalStone believes the brewer’s strong asset base, combined with ongoing efficiency improvements, will sustain growth momentum into 2026 and beyond.

In conclusion, the investment firm’s raised target price and reaffirmed Buy rating reflect growing optimism about Nigerian Breweries’ ability to navigate Nigeria’s complex macroeconomic landscape. As consumer demand stabilizes, costs normalize, and the company resumes dividend payments, investors may find renewed value in one of Nigeria’s most enduring consumer brands.

The Nigerian stock market wrapped up the first week of November 2025 on a bearish note, as renewed selling pressure weighed heavily on key blue-chip stocks. The Nigerian Exchange (NGX) All-Share Index (ASI) declined by 4,601.65 points to close at 149,524.81 points, representing a 2.99% weekly loss compared to 154,126.46 points recorded the previous week.

Despite a few bright spots among select gainers, the overall sentiment remained negative, signaling cautious investor activity amid profit-taking and macroeconomic headwinds.

Market Overview: Bears Dominate Trading

The week was largely bearish, with the NGX recording losses in all five trading sessions. The ASI dipped by 0.25% on Monday, deepened further on Tuesday, and suffered its sharpest fall on Wednesday with a 1.19% drop (a decline of 1,816.2 points).

While Thursday and Friday witnessed milder declines, the index slipped below the 150,000-point mark—a key psychological threshold—reflecting persistent selloffs across major sectors.

Market activity also weakened as trading volume and value fell sharply. Investors exchanged 3.57 billion shares worth ₦107.01 billion in 146,429 deals, compared to 7.47 billion shares valued at ₦145.42 billion across 175,000 deals the week before.

Total market capitalization dropped to ₦94.99 trillion, down from ₦97.8 trillion in the previous week, underscoring the overall bearish momentum.

Market Breadth and Key Indices

Market breadth remained weak, as only 20 equities gained compared to 29 in the prior week. Meanwhile, 75 stocks declined, and 51 remained unchanged.

• NGX Premium Index: down 3.76%, driven by sharp declines in ACCESSCORP (-10.02%), MTN Nigeria (-8.29%), Lafarge Africa (-6.43%), Zenith Bank (-4.76%), and UBA (-0.12%).

• NGX 30 Index: fell 3.00%.

• NGX Main Board Index: dropped 2.56%.

Every major sectoral index closed in the red.

Sectoral Performance: Broad-Based Declines

• Insurance Sector: Worst hit, as the NGX Insurance Index fell 7.56%, dragged by Sovereign Trust Insurance Plc (-28.21%) and International Energy Insurance (-17.01%).

• Oil and Gas: Down 4.80%, reflecting losses in Oando Plc (-16.75%) and Eternal Plc (-1.39%).

• Banking Sector: Lost 3.85%, pressured by declines in ACCESSCORP (-10%), Zenith Bank (-4.76%), and modest dips in GTCO, Wema Bank, UBA, and Fidelity Bank.

• Consumer Goods: Dropped 2.54%, as investors rotated out of key staples.

• Industrial Goods: Declined 1.09%, weighed by weakness in cement and building material stocks.

Top Gainers: NCR and Eunisell Lead the Charge

Despite the bearish tone, a few stocks bucked the trend to deliver impressive weekly returns.

• NCR (Nigeria) Plc: +20.94%, closing at ₦19.35.

• Eunisell Interlinked Plc: +20.17%, ending the week at ₦70.90.

• Union Dicon Salt Plc: +9.93%, closing at ₦7.75.

• Honeywell Flour Mill Plc: +9.50%, to ₦21.90.

• UPDC Plc: +6.81%, to ₦6.59.

• Livestock Feeds Plc: +5.71%, to ₦7.40.

• eTranzact International Plc: +4.33%, to ₦13.25.

• LivingTrust Mortgage Bank Plc: +3.50%, to ₦4.14.

• Abbey Mortgage Bank Plc: +2.86%, to ₦7.20.

• Okomu Oil Palm Plc: +2.78%, closing at ₦1,110.00.

Top Losers: Insurance and Aviation Stocks Dominate Declines

The week’s top decliners were led by Sovereign Trust Insurance Plc (-28.21%), which closed at ₦2.80, followed by C&I Leasing Plc (-20.16%), ending at ₦5.03.

Other notable laggards include:

• Skyway Aviation Handling Company Plc: -18.99%, ₦80.60.

• Berger Paints Plc: -17.41%, ₦35.10.

• International Energy Insurance Plc: -17.01%, ₦2.44.

• Oando Plc: -16.75%, ₦40.00.

• Tantalizers Plc: -16.67%, ₦2.00.

• The Initiates Plc: -16.02%, ₦10.75.

• Champion Breweries Plc: -13.33%, ₦13.00.

• ASO Savings and Loans Plc: -12.62%, ₦0.90.

Corporate Highlights

• Aso Savings and Loans Plc and Veritas Kapital Assurance Plc released their Q3 2025 results.

• Ellah Lakes Plc received SEC approval for its ₦235 billion public offer.

• ABC Transport Plc published its quarterly financials for September 2025.

• Airtel Africa Plc announced an interim dividend for shareholders.

Outlook: Short-Term Weakness, Long-Term Opportunity

The NGX remains in a correction phase as profit-taking persists in large-cap stocks. However, market watchers believe sentiment could turn positive as investors respond to strong Q3 earnings results and anticipate corporate actions in Q4.

If inflationary pressures ease and liquidity improves, selective bargain-hunting may support a rebound in the coming weeks.

For now, cautious optimism remains the dominant tone, with investors advised to focus on fundamentally strong stocks offering consistent dividend yields and stable growth prospects.

The Nigerian Exchange Limited (NGX) has kicked off November with renewed momentum in the capital markets, following the successful listing of a ₦4.64 billion infrastructure bond issued by Elektron Finance SPV Plc.

The 22.00% Series 1 Senior Guaranteed Fixed Rate Infrastructure Bond, listed on Monday, November 3, 2025, marks the first tranche under the company’s ambitious ₦200 billion Bond Issuance Programme.

This 15-year bond, which matures in July 2040, carries a fixed coupon rate of 22% per annum, positioning it among the most attractive long-term debt instruments currently traded on the NGX.

Strong Credit Enhancement and Institutional Backing

Structured as a senior guaranteed bond, the issue is backed by the Infrastructure Credit Guarantee Company Plc (InfraCredit) and co-obligated by Victoria Island Power Limited. This dual backing provides investors with robust protection and enhances the bond’s credit quality.

InfraCredit’s guarantee effectively transforms the Elektron Finance bond into a low-risk, investment-grade asset, while the co-obligation ensures both financial and operational discipline. Market analysts note that such structures have become increasingly important in deepening Nigeria’s infrastructure debt market.

Key Details of the Listing

According to the NGX, the bond was listed at ₦1,000 per unit and will make semi-annual coupon payments on January 7 and July 7, beginning in July 2025.
Amortised redemption payments will start 36 months after issuance and continue until maturity in July 2040, ensuring disciplined repayment throughout the tenor.

Strong Institutional Participation

The offering attracted significant institutional investor participation, underscoring growing confidence in infrastructure-backed corporate debt.

• Lead Issuing House: Vetiva Advisory Services Limited

• Joint Issuing Houses: Anchoria Advisory Services, ARM Capital, CardinalStone Partners, FBNQuest Merchant Bank, and Iron Global Markets Limited

• Joint Stockbrokers: Anchoria Securities Limited, Vetiva Securities Limited, and ARM Securities Limited

• Bond Trustee: Custodian Trustees Limited

• Registrar: Veritas Registrars Limited

Market observers say the success of the Elektron Finance Series 1 bond demonstrates the increasing appetite for long-term, high-yield instruments in Nigeria’s fixed-income market, particularly among pension funds, insurance firms, and asset managers.

Why It Matters

Nigeria continues to face a substantial infrastructure financing gap, estimated at over $100 billion annually. Instruments such as the Elektron Finance bond—supported by InfraCredit guarantees—are vital for attracting long-term domestic capital into critical sectors like power, transport, and industrial development.

About InfraCredit

InfraCredit is a specialised credit enhancement institution backed by the Nigeria Sovereign Investment Authority (NSIA) and international development finance partners. Its mandate is to de-risk infrastructure-related debt instruments and make long-term, naira-denominated financing more attractive to institutional investors.

By guaranteeing corporate infrastructure bonds, InfraCredit helps reduce default risk, improve liquidity, and promote sustainable investment in Nigeria’s economic backbone.

Bottom Line

The ₦4.64 billion Elektron Finance SPV Plc bond listing reinforces NGX’s position as a key platform for infrastructure finance and long-term capital mobilisation. With a 22% annual yield, strong guarantees, and disciplined repayment structure, the bond represents a compelling opportunity for investors seeking high returns with low credit risk—and a vital step forward in bridging Nigeria’s infrastructure gap.

Zeenab Foods Limited, one of Nigeria’s foremost agro-allied and food processing companies, has reaffirmed its market strength and investor credibility with the successful completion of an oversubscribed ₦25.4 billion Series 1 Commercial Paper (CP) issuance. The offering, launched under the company’s newly established ₦50 billion Commercial Paper Programme, exceeded its initial target of ₦10 billion, underscoring robust investor confidence in Zeenab Foods’ operational track record and creditworthiness.

According to the company, proceeds from the issuance will be deployed to fund working capital needs and boost operational efficiency, particularly across its integrated value chain that spans agriculture, food processing, and logistics. The overwhelming subscription, which more than doubled the initial offer, reflects continued faith in Zeenab Foods’ business fundamentals and disciplined financial management.

This issuance marks a significant milestone in the company’s funding strategy and builds upon its ₦20 billion Commercial Paper Programme launched in 2024. Under that earlier programme, Zeenab successfully raised ₦22 billion through multiple tranches, all of which were fully redeemed before their respective maturity dates—a rare achievement that further solidified the company’s reputation for reliability and investor protection.

Commitment to Operational Excellence and Transparency

Commenting on the successful completion of the issuance, Dr. Ayemere O. Victor, Managing Director and Chief Executive Officer of Zeenab Foods Limited, described the outcome as a testament to the company’s credibility and the resilience of its business model.

“The success of this issuance reflects the strength of our business model, our operational resilience, and the trust investors continue to place in Zeenab Foods,” Dr. Victor stated. “The proceeds will be strategically deployed to fund our working capital requirements and further strengthen our operational efficiency as we continue to expand our footprint across Nigeria’s agro-industrial landscape.”

He further extended appreciation to Pathway Advisors Limited, the Financial Adviser, Transaction Sponsor, and Lead Arranger of the programme, for their strategic guidance and professionalism, as well as to the Joint Dealers for their collaborative role in ensuring the transaction’s success.

Advisers Praise Zeenab’s Consistency and Market Performance

In his remarks, Mr. Adekunle Alade, Founder and CEO of Pathway Advisors Limited, commended Zeenab Foods for its strong financial governance and consistent performance, describing the oversubscription as a clear reflection of investor confidence in the company’s vision and leadership.

“We are proud to have supported Zeenab Foods Limited on another successful CP issuance,” Alade said. “The strong market response demonstrates investors’ belief in Zeenab’s sound corporate governance, credit profile, and growth strategy. The company’s track record of timely redemption of all previous CP obligations has further enhanced its market credibility.”

Mr. Alade also acknowledged the contributions of the Joint Issuing and Placing Agents/Dealers—AIICO Capital Partners Limited, FSDH Capital Limited, Rand Merchant Bank Limited, and Boston Advisory Limited—whose collaboration ensured the smooth execution of the transaction.

He reaffirmed Pathway Advisors’ commitment to assisting strong, growth-oriented Nigerian companies in accessing short- and long-term funding from the domestic capital market. “Our mission is to continue bridging the gap between investors and credible issuers, enabling efficient capital allocation that drives national development,” he said.

Strengthening the Nigerian Capital Market

The success of Zeenab Foods’ latest commercial paper offering not only strengthens its liquidity position but also reinforces growing investor appetite for corporate debt instruments in Nigeria. In a period marked by tight monetary policy and economic uncertainty, the oversubscription sends a strong signal of confidence in the agro-processing sector and its resilience as a driver of inclusive growth.

Market analysts note that Zeenab’s consistent performance, backed by solid governance structures, has positioned it as one of the most trusted non-bank issuers in Nigeria’s private debt market. The company’s prudent use of debt financing, coupled with its commitment to sustainable agricultural value chains, continues to attract institutional investors seeking both stability and growth.

As Nigeria intensifies efforts to deepen its capital market and diversify financing sources for private enterprises, Zeenab Foods’ achievement stands as a model of corporate discipline and transparency. The firm’s ability to attract strong investor participation across multiple funding rounds highlights the growing maturity of Nigeria’s financial ecosystem and the crucial role of well-managed issuers in sustaining market confidence.

“We remain committed to maintaining the highest standards of integrity, accountability, and performance,” Dr. Victor concluded. “This achievement is not just a reflection of investor trust—it is a reaffirmation of Zeenab’s mission to drive sustainable growth in Nigeria’s food and agricultural sector.”

The Impact Investors Foundation (IIF) has revealed that Lagos State and Nigeria’s Southwest region collectively attract more than 65% of all private capital inflows into the country, leaving other regions—particularly the North—significantly underfunded. This revelation was contained in the foundation’s newly released “Nigeria Impact Investing Ecosystem Mapping and Market Sizing Report,” presented during the 8th Annual Convening on Impact Investing held in Lagos on Wednesday, November 6, 2025.

According to the report, the concentration of capital in Lagos is primarily driven by the dominance of fintech, digital services, and tech-enabled enterprises, which continue to attract both domestic and foreign investment. In contrast, the North and North-West regions collectively receive between 10% and 12% of total inflows, largely funneled into traditional sectors such as agriculture and microfinance. Meanwhile, key social impact areas like healthcare, education, and sanitation continue to receive minimal funding, deepening economic disparities across regions.

Uneven Investment Flows and Rising Poverty

The IIF report painted a concerning picture of economic inequality, noting that 56% of Nigerians were living below the national poverty line in 2024, a significant rise from 49% in 2023. The report attributed this surge to persistent inflation, exchange rate volatility, and sluggish productivity in job-creating sectors.

The Foundation warned that if capital continues to bypass sectors that generate employment and improve access to essential services, the country risks worsening poverty and social instability. The report further identified what it termed a “missing middle” financing gap, where small and growing businesses (SGBs) seeking between ₦10 million and ₦500 million face major funding obstacles, including high collateral requirements, short loan durations, and high-interest rates. This financing gap, according to IIF, stifles entrepreneurship and limits job creation in critical sectors.

Redirecting Capital for Inclusive Growth

Speaking at the event, Etemore Glover, Chief Executive Officer of the Impact Investors Foundation, emphasized that the new report builds upon the 2019 baseline study and provides an updated, evidence-driven assessment of Nigeria’s evolving investment ecosystem.

“The launch of the 2025 Nigeria Impact Investing Ecosystem Mapping and Market Sizing Report is a vital milestone. It provides robust data and insights to help policymakers, DFIs, and investors understand where impact capital can make the greatest difference,” Glover stated.

She noted that while Nigeria’s investment ecosystem has matured, there remains a pressing need to translate available capital into measurable impact, particularly in underserved regions and sectors. According to her, the convening’s objective was to galvanize a diverse network of investors, policymakers, development partners, and entrepreneurs to collectively accelerate Nigeria’s transition into an impact-ready economy—one that prioritizes both financial returns and social value.

Experts Push for Domestic Capital Mobilization

Frank Aigbogun, Chairman of the IIF and Publisher of BusinessDay, called for a renewed emphasis on mobilizing local capital sources such as pension funds, corporate reserves, and diaspora remittances to drive sustainable development. He noted that over-reliance on foreign aid and concessional loans has become unsustainable amid shifting global priorities.

“Global evidence shows that businesses delivering social impact can also generate competitive financial returns,” Aigbogun said. “Nigeria must reimagine its investment model by channeling domestic capital into ventures that build inclusive and resilient growth.”

Adding to this, Oyinkansola Akintola-Bello, Country Director of the UK–Nigeria Tech Hub, reaffirmed the UK government’s continued support for Nigeria’s inclusive investment landscape. She highlighted that ongoing UK-backed programs in gender-responsive investing, climate finance, and enterprise development demonstrate long-term commitment but emphasized that “Nigeria must lead by mobilizing its own domestic capital to ensure sustainability and resilience.”

Bridging the Regional Investment Divide

The report also acknowledged some positive developments in local-currency financing, led by domestic financial institutions such as the Development Bank of Nigeria (DBN), Bank of Industry (BOI), and InfraCredit. These institutions have played a pivotal role in providing long-term financing for infrastructure, renewable energy, and manufacturing, reducing reliance on foreign-denominated loans.

Additionally, multilateral partners including the International Finance Corporation (IFC), African Development Bank (AfDB), Afreximbank, British International Investment (BII), and FMO have continued to anchor large-scale development projects across Nigeria. However, IIF warned that unless deliberate policies are implemented to address regional capital disparities, inclusive growth will remain elusive.

“The concentration of capital in Lagos and the Southwest, while beneficial for innovation, poses a structural challenge for national development,” the report concluded. “Balancing capital flows toward underserved regions and sectors is essential to achieving equitable economic growth.”

As Nigeria pushes to diversify its economy and strengthen its private sector, the IIF’s findings serve as a stark reminder that equitable access to investment capital is fundamental to reducing poverty, driving productivity, and building a more inclusive future.

In a resounding return to the global debt markets, Nigeria has successfully raised $2.35 billion through a dual-tranche Eurobond issuance that drew unprecedented investor demand exceeding $13 billion — the largest orderbook ever recorded in the country’s history.

The historic issuance marks Nigeria’s first outing to the international bond market in two years and is widely seen as a strong vote of confidence in the nation’s ongoing economic reforms and fiscal stabilization agenda under President Bola Ahmed Tinubu.

According to a statement issued by the Debt Management Office (DMO) on Wednesday, the transaction underscores investors’ renewed faith in Nigeria’s macroeconomic policies, prudent fiscal management, and long-term growth outlook despite global market volatility and geopolitical risks.

Record-Breaking Demand Despite Global Headwinds

The DMO described the Eurobond sale as a “landmark success” for Africa’s largest economy, noting that the transaction was oversubscribed by nearly 477 percent. The overwhelming participation came amid global uncertainty, including tensions in the Middle East and recent U.S. political statements suggesting potential military action in West Africa.

Despite these challenges, investors across continents demonstrated strong appetite for Nigerian sovereign debt, viewing the country’s fiscal reforms, exchange rate unification, and subsidy removal as credible steps toward restoring economic stability.

“The transaction attracted a peak orderbook of over $13 billion, marking the largest ever achieved by the Republic,” the DMO said.
“This underscores the robust support for Nigeria’s credit story across geography and investor class.”

Details of the Eurobond Offer

Nigeria’s $2.35 billion Eurobond was issued in two tranches — a $1.25 billion long 10-year note due 2036, and a $1.10 billion long 20-year note due 2046.

The 10-year tranche was priced at a yield of 8.63 percent, while the 20-year note was priced at 9.13 percent, reflecting investor willingness to extend duration despite global interest rate pressures.

According to the DMO, the transaction saw broad-based participation from global asset managers, pension and insurance funds, hedge funds, banks, and other institutional investors. Regional demand was also diverse, with strong orders coming from the United Kingdom, North America, Europe, Asia, and the Middle East, alongside meaningful participation from Nigerian investors.

“The broad investor participation is an expression of sustained confidence in Nigeria’s sound macroeconomic framework, prudent fiscal strategy, and reform momentum,” the DMO added.

The agency confirmed that the newly issued notes will be listed on the London Stock Exchange (LSE), the FMDQ Securities Exchange Limited, and the Nigerian Exchange Limited (NGX), providing global visibility and secondary market liquidity.

Use of Proceeds and Strategic Advisors

Proceeds from the Eurobond issuance will be used to finance Nigeria’s 2025 fiscal deficit and support broader government financing needs, including infrastructure development, social spending, and economic stabilization initiatives.

To structure and execute the deal, Nigeria appointed a consortium of leading global financial institutions — Chapel Hill Denham, Citigroup, Goldman Sachs, J.P. Morgan, and Standard Chartered Bank — as Joint Bookrunners. FSDH Merchant Bank Limited acted as the Financial Adviser.

The selection of top-tier advisers underscores the government’s intention to ensure transparency, competitive pricing, and credibility in accessing global capital markets.

Official Reactions: Tinubu, Edun, Oniha Speak

President Bola Ahmed Tinubu described the successful issuance as a clear signal of investor confidence in Nigeria’s reform trajectory and economic management.

“This development reaffirms Nigeria’s position as a recognized and credible participant in the global capital market,” Tinubu said.
“It is a testament to the belief in our government’s vision for fiscal discipline, market stability, and inclusive growth.”

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the strong global response reflects recognition of Nigeria’s efforts to strengthen its fiscal base, stabilize the naira, and attract sustainable investment.

“Our successful market access after two years demonstrates the international community’s trust in Nigeria’s reform agenda and its commitment to macroeconomic recovery,” Edun stated.

Patience Oniha, the Director-General of the DMO, noted that the return to the Eurobond market is part of a broader strategy to diversify funding sources while supporting national development priorities.

“This transaction represents a major milestone for Nigeria. It aligns with our objective to secure long-term financing to support the federal government’s growth and infrastructure agenda,” she said.

Context and Market Implications

Nigeria’s return to the Eurobond market follows a period of global tightening in capital flows and heightened investor caution toward emerging markets. The country last issued Eurobonds in 2022, and its decision to re-engage with international investors comes amid renewed fiscal consolidation and monetary policy coordination under the Tinubu administration.

The issuance also follows earlier disclosures by Sanyade Okoli, Special Adviser to the President on Finance and the Economy, who had in mid-October announced plans for a $2.3 billion Eurobond as part of Nigeria’s refinancing and debt management strategy.

Recent reports indicated that Nigeria’s longer-dated Eurobonds, particularly the 7.625% November 2047 and 8.25% September 2051 notes, had faced price pressure earlier in October due to rising U.S. yields and global risk aversion. The new issuance — backed by strong demand — is therefore viewed by analysts as a turning point in rebuilding Nigeria’s credit perception and restoring access to competitive financing.

Conclusion

Nigeria’s $2.35 billion Eurobond success, backed by record investor demand, signals a resounding endorsement of its ongoing reforms and economic management strategy. It also highlights the country’s re-emergence as a credible and attractive borrower in the international capital markets.

As proceeds are deployed to finance key development priorities, the issuance not only strengthens Nigeria’s fiscal resilience but also reinforces global confidence in its long-term growth trajectory — proving that disciplined reform and market credibility can once again make Nigeria a top destination for global capital.

Nigeria’s non-interest capital market has achieved a significant milestone, expanding to a valuation exceeding N1.6 trillion, according to the Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama.

Speaking at the 7th African International Conference on Islamic Finance (AICIF 2025) held in Lagos, Dr. Agama described the surge as a “remarkable validation of investor confidence, regulatory innovation, and the growing appetite for ethical finance in Africa’s largest economy.”

He emphasized that the non-interest segment — anchored on Islamic finance principles — has become a vital pillar of Nigeria’s broader financial inclusion strategy and a key vehicle for mobilizing long-term funds for critical infrastructure projects.

Ethical Finance Driving Infrastructure Development

Dr. Agama credited the rapid growth of the non-interest market to deliberate policy actions and reforms under the Investments and Securities Act (ISA) 2025, which provides a robust framework for ethical and Shariah-compliant investments.

“The remarkable growth of this segment, now valued at over N1.6 trillion, shows that when the regulatory environment is right, markets respond with innovation and resilience,” Agama stated.

A cornerstone of this expansion, he noted, is Nigeria’s sovereign Sukuk programme, which has raised more than N1.4 trillion across seven issuances since 2017. Proceeds from these Sukuk have funded 124 key road projects spanning approximately 5,820 kilometres across the country.

In a major development, the SEC boss disclosed that the federal government has approved plans for a $500 million international Sukuk issuance, marking Nigeria’s next phase of engagement with the global Islamic finance community. The offering is expected to attract foreign ethical investors and deepen Nigeria’s participation in the rapidly expanding international Sukuk market.

Africa’s Rising Embrace of Non-Interest Finance

Dr. Agama also highlighted the growing momentum of Islamic finance across Africa, citing examples from Egypt, Kenya, Tanzania, Senegal, and Ghana, where regulators are strengthening frameworks to attract Shariah-compliant investments.

He said the expansion reflects Africa’s readiness to integrate non-interest financial instruments into mainstream financial systems and use them as catalysts for sustainable development.

Agama commended the organizers of AICIF, Metropolitan Skills, for sustaining an influential platform that shapes the discourse around ethical finance and financial inclusion. He added that insights from the 2025 conference would feed into the Second Nigerian Capital Market Masterplan (2026–2035), which is set to guide the next decade of market reforms following the conclusion of the first plan this year.

“Our vision is clear,” Agama declared. “Ethical finance is not just about compliance with Shariah principles — it is about fairness, transparency, and shared prosperity. Prosperity without inclusion is not sustainable.”

Bridging Africa’s Infrastructure Gap

In her keynote remarks, Ms. Ummahani Ahmad Amin, Chair of the AICIF, commended Nigeria’s progress but cautioned that Africa still lags in leveraging Islamic finance as a sustainable source of capital.

She noted that while global Islamic financial assets expanded by 14.9% to reach $3.88 trillion in 2024, the continent’s contribution remains modest due to structural barriers such as low market depth, weak liquidity, and limited investor education.

“Islamic finance has proven its resilience globally, but Africa must now convert potential into performance,” Amin said. “To make Sukuk and other non-interest instruments effective in bridging our infrastructure deficit — estimated between $130 billion and $170 billion annually — we must strengthen local ecosystems and awareness.”

She also stressed the importance of technology and innovation, noting that Artificial Intelligence (AI) is reshaping the ethical finance landscape through automated compliance, data-driven transparency, and enhanced market accessibility. However, she warned that without strong ethical safeguards, technology could undermine the very trust that underpins Islamic finance.

Innovation, Inclusion, and the Next Generation

A notable feature of this year’s conference was a startup pitch competition co-hosted by the SEC, designed to encourage youth-driven innovation in ethical finance. ZannyTecture Recycling Company Limited won the Social Impact category for its sustainable recycling solutions, while BetaLife Health clinched the Technology Innovation award for its AI-powered platform that optimizes blood supply chains in healthcare.

In closing, Amin announced the launch of The Metropolitan Waqf, a charitable endowment aimed at expanding access to education for underserved communities, especially in Nigeria’s conflict-affected regions.

The event’s overarching message was clear: Nigeria’s non-interest capital market is not just growing — it is transforming into a vehicle for inclusive, transparent, and sustainable economic development, positioning the country as a regional leader in ethical finance.

Nigeria is set to re-enter the international debt market this week with plans to issue $2.3 billion in Eurobonds, its first major foreign borrowing in nearly a year. The move comes at a delicate time, as global investors assess geopolitical tensions following U.S. President Donald Trump’s recent threat of military action against Islamist militants in Nigeria — comments that briefly rattled investor confidence and caused a short-term dip in Nigerian assets.

According to a Bloomberg report citing individuals familiar with the process, the Nigerian government intends to issue 10-year Eurobond notes, alongside either 15- or 30-year securities, depending on final approval from the Federal Ministry of Justice. The issuance marks a significant step in Nigeria’s return to international capital markets after a cautious period of fiscal consolidation and domestic borrowing.

Despite the geopolitical noise, Nigeria’s decision signals confidence in global appetite for emerging-market debt, especially as investors seek higher yields amid expectations that the U.S. Federal Reserve may begin cutting interest rates in the coming quarters.

Tapping Global Capital Markets

Nigeria’s Eurobond plan aligns with a broader wave of African sovereigns returning to the international bond market in 2025. Kenya and Angola have already raised funds this year, taking advantage of improved global sentiment toward frontier economies and a narrowing of African debt spreads.

According to JPMorgan Chase & Co., the average spread on African sovereign bonds over U.S. Treasuries has tightened to about 367 basis points, roughly half of what it was in April — an indication that investors are regaining confidence in African debt markets.

If successfully executed, the sale would be Nigeria’s first international bond issuance since December 2024, when the government raised $2.2 billion. The upcoming issuance, expected to close within days, had initially been delayed after Trump’s comments accusing Nigeria of religious persecution and threatening to withdraw U.S. aid.

The remarks triggered a temporary selloff in Nigerian bonds and currency markets, but President Bola Ahmed Tinubu quickly moved to reassure investors, rejecting Trump’s claims and reaffirming Nigeria’s commitment to religious freedom.

“Nigeria is a secular nation with constitutional guarantees for all faiths,” Tinubu posted on X (formerly Twitter). “Our democracy stands firm on equality, tolerance, and justice.”

The Eurobond Managers and Structure

The federal government has appointed a consortium of top investment banks as joint lead managers for the transaction. These include Chapel Hill Denham, JPMorgan Chase & Co., Standard Chartered Plc, Citigroup Inc., and Goldman Sachs Group Inc., while FSDH Merchant Bank Ltd. serves as the financial adviser.

The deal structure will likely include tranches of different maturities to attract a broad range of investors — from pension funds and insurance companies to sovereign wealth funds. According to market analysts, strong participation is expected given Nigeria’s improving fiscal fundamentals and reforms under the Tinubu administration.

Nigeria’s National Assembly had already approved plans to raise $2.3 billion in foreign debt before year-end, in addition to a $500 million sukuk issuance, signaling legislative alignment with the government’s financing strategy.

Globally, emerging-market governments have raised over $245 billion in dollar- and euro-denominated bonds this year — the highest issuance volume since 2014, according to Bloomberg data.

Meanwhile, Nigeria’s existing 2051 Eurobond fell slightly by about one cent to 91.05 cents on the dollar in recent days, pushing yields up to 9.14%, though still far below the 12.11% peak recorded in April.

Reform Momentum and Investor Confidence

Since assuming office in May 2023, President Tinubu’s administration has pursued a string of market-oriented reforms designed to restore macroeconomic stability and rebuild investor confidence. These include the removal of fuel subsidies, tax system restructuring, and the liberalization of the naira exchange rate.

These measures, though initially painful for consumers, have been lauded by international institutions and credit rating agencies. In a notable show of confidence, Moody’s Ratings upgraded Nigeria’s sovereign credit rating from Caa1 to B3, citing “significant improvements in external balances, fiscal management, and reform implementation.”

The upgrade placed Nigeria back on the radar of global institutional investors, many of whom had reduced exposure during years of policy uncertainty.

Nigeria’s Debt Outlook

Nigeria’s Eurobond issuance is also part of a broader strategy to manage upcoming debt maturities. The country faces two key repayment obligations by the end of 2025 — a $1.12 billion Eurobond maturing in November 2025, and a ₦100 billion sukuk bond issued to finance critical infrastructure projects.

The 7.625% Eurobond, issued in November 2018, represents a significant portion of Nigeria’s external debt portfolio and was originally used to support foreign reserves and capital projects in transport, power, and housing sectors.

Analysts view the new $2.3 billion Eurobond as both a refinancing tool and a liquidity booster, helping Nigeria strengthen its reserves while funding priority projects outlined in the 2025 budget. However, they caution that continued external borrowing could expose the country to exchange-rate risks if oil revenues underperform.

Looking Ahead

Nigeria’s return to the Eurobond market underscores its balancing act between raising foreign capital and safeguarding fiscal stability. The Tinubu administration hopes that steady policy implementation, coupled with global investor optimism toward African debt, will support a successful issuance despite recent geopolitical turbulence.

As global markets watch closely, the success of this Eurobond sale will serve as a litmus test of investor confidence in Nigeria’s economic trajectory — and its ability to navigate complex political and financial headwinds.

President Bola Ahmed Tinubu has formally requested the Senate’s approval for a new ₦1.15 trillion domestic loan to help finance Nigeria’s 2025 federal budget deficit, marking another major step in the administration’s efforts to balance fiscal responsibility with developmental priorities.

The request was conveyed in a letter addressed to Senate President Godswill Akpabio and read aloud during Tuesday’s plenary session. In the correspondence, Tinubu explained that the proposed borrowing would form a critical component of the government’s 2025 fiscal plan, aimed at bridging funding gaps and ensuring the smooth execution of high-impact projects across various sectors of the economy.

According to the president, the loan would serve as part of the federal government’s broader medium-term debt management strategy, which emphasizes the use of domestic borrowing to finance infrastructure, stimulate job creation, and enhance social welfare programs without overly exposing the country to foreign exchange risks.

“The proposed domestic borrowing will enable the government to meet its financial obligations for ongoing and new projects under the 2025 fiscal framework,” Tinubu stated. “It aligns with our commitment to responsible debt management, inclusive growth, and sustainable development.”

After reading the president’s letter, Senate President Akpabio referred the request to the Senate Committee on Local and Foreign Debt, chaired by Senator Haruna Manu, for in-depth review. The committee has been directed to submit its report within one week, after which the Senate will deliberate and vote on the request.

A Fiscal Strategy Rooted in Domestic Financing

The proposed ₦1.15 trillion domestic loan reflects the Tinubu administration’s ongoing shift toward domestic borrowing as a more sustainable financing option. Economists argue that such borrowing helps mitigate external vulnerabilities, particularly those linked to global interest rate volatility and currency depreciation.

Domestic loans are typically raised through government securities such as treasury bills, bonds, and sukuk instruments, which are purchased primarily by local institutional investors including pension funds, banks, and insurance firms.

By relying more on the domestic market, the federal government aims to strengthen Nigeria’s capital market depth while simultaneously supporting the growth of long-term investment instruments.

However, critics caution that the government’s growing dependence on debt to fund recurrent and capital expenditure continues to strain Nigeria’s fiscal stability, especially amid sluggish revenue performance and rising debt service costs.

Legislative and Economic Context

President Tinubu’s latest request follows several major borrowing approvals in recent months. In October 2025, the House of Representatives approved a $2.35 billion external borrowing request and a $500 million sovereign sukuk issuance to help finance portions of the 2025 budget and diversify Nigeria’s access to global capital markets.

Earlier in July 2025, the Senate had approved a $21.5 billion external borrowing plan covering 2025–2026. The plan focuses on infrastructure, power, agriculture, education, and healthcare. Additionally, the Senate authorized the issuance of a ₦757 billion Federal Government Bond to clear outstanding pension arrears under the Contributory Pension Scheme (CPS) as of December 2023.

Nigeria’s total public debt has continued to rise, reaching ₦149.39 trillion as of March 31, 2025, according to data from the Debt Management Office (DMO). This represents an increase of ₦27.72 trillion, or 22.8%, compared to ₦121.67 trillion recorded in March 2024.

In the same period, the DMO reported that it successfully raised ₦1.39 trillion through the issuance of domestic Sukuk bonds, which have been directed toward critical infrastructure projects, particularly roads and bridges across the federation.

Implications of the New Borrowing

Analysts note that President Tinubu’s ₦1.15 trillion borrowing request underscores the ongoing fiscal pressures facing Nigeria as it seeks to balance expenditure commitments with constrained revenue flows. The federal government’s 2025 budget, estimated at over ₦38 trillion, includes substantial allocations to defense, infrastructure, education, and social protection programs.

While borrowing remains a necessary tool for budget execution, the continuous rise in debt levels has fueled debate over Nigeria’s debt sustainability and repayment capacity. According to fiscal experts, more than 60% of government revenues are now devoted to debt servicing, leaving limited fiscal space for development initiatives.

Nonetheless, domestic borrowing presents certain advantages. It reduces exposure to currency risks since repayment obligations are denominated in naira. It also deepens local capital market participation, provides investment opportunities for pension funds, and helps the government manage liquidity cycles more effectively.

However, experts also warn that excessive domestic borrowing could crowd out private sector access to credit, driving up lending rates and slowing business expansion. The government’s challenge, therefore, lies in striking a delicate balance between borrowing for growth and maintaining fiscal prudence.

Looking Ahead

The Senate Committee on Local and Foreign Debt is expected to scrutinize the proposed ₦1.15 trillion facility in the coming days, focusing on the cost of borrowing, repayment terms, and the specific projects the funds are intended to support.

As Nigeria grapples with persistent fiscal pressures, declining oil revenues, and global economic uncertainty, the Tinubu administration’s fiscal strategy will be closely watched — not only for its impact on economic growth but also for its implications for debt sustainability and public accountability.

The Apapa Area Command of the Nigeria Customs Service (NCS) has achieved a historic milestone, generating an unprecedented ₦304 billion in revenue for October 2025 — the highest ever recorded by any customs command in Nigeria’s history.

This remarkable achievement was confirmed by the Area Controller, Comptroller Emmanuel Oshoba, in a statement released by the Command’s Public Relations Officer, Superintendent of Customs Tunde Ayagbalo, and reported by the News Agency of Nigeria (NAN). The figure surpasses the ₦264 billion collected in October 2024, setting a new benchmark for customs revenue generation nationwide.

According to Oshoba, the command’s outstanding performance reflects sustained reforms, enhanced trade facilitation, and improved compliance levels among port users. Between January and October 2025, Apapa Command has already collected over ₦2.4 trillion, exceeding the total annual revenue for 2024 — a sign of continued operational excellence and efficiency under his leadership.

“The Apapa Command has entered a new phase of revenue performance,” Oshoba stated. “Generating ₦304 billion in a single month is a testament to the dedication of our officers, the cooperation of stakeholders, and the effectiveness of recent digital reforms.”

Pioneering Reforms and Operational Efficiency

Oshoba emphasized that the command’s revenue growth is being supported by advanced technological infrastructure and new operational models designed to streamline trade. Among these innovations is the Drive-Through Scanning System, an automated inspection technology capable of processing up to 150 containers per hour. The system, which is expected to be fully operational in early 2026, will reduce physical examination of goods, cut clearance time, and significantly curb smuggling or undervaluation attempts.

In line with directives from the Comptroller-General of Customs, Bashir Adeniyi, Apapa officers have undergone extensive retraining programs aimed at enhancing efficiency, transparency, and integrity in customs operations. Oshoba reiterated the Command’s commitment to a “zero-compromise” approach toward revenue recovery and anti-corruption enforcement.

“Every officer is aware that our success depends on professionalism and accountability,” he added. “We are ensuring strict compliance while facilitating legitimate trade through technology-driven systems.”

One-Stop-Shop Model to Transform Trade

To further boost efficiency, the command is rolling out a One-Stop-Shop (OSS) model — a centralized processing framework that allows all relevant customs units to jointly handle declarations in one location. This system eliminates duplication, shortens processing time, and minimizes opportunities for delay or extortion.

The OSS initiative, piloted across Apapa, Tin Can, and Onne ports since September 2025, aims to reduce average cargo clearance time from 21 days to 48 hours. Once consignments are cleared under this model, they will no longer be re-intercepted by other units, improving predictability and confidence in Nigeria’s import-export process.

In addition, the NCS has launched a digital overtime e-clearance platform, enabling importers to regularize and release long-standing cargo trapped at ports. This innovation helps decongest terminals, reduce demurrage, and curb manual interference — a long-standing challenge in Nigeria’s port ecosystem.

Implications for Trade and the Economy

The Apapa Command’s record-breaking performance holds significant implications for Nigeria’s fiscal position. As the nation’s primary gateway for imports, Apapa accounts for a large share of customs revenue and trade volume. The ₦304 billion collection in October alone represents roughly 13% of the NCS’s total 2025 target, positioning the service on track to surpass its annual projection.

Analysts say the Command’s achievement demonstrates how digital transformation and enforcement discipline can coexist to enhance government revenue. Improved automation has not only boosted transparency but also enhanced investor confidence in Nigeria’s trade system.

Maritime stakeholders have praised the Customs Service for adopting modern trade facilitation tools that align with global best practices. Freight forwarders and terminal operators say the reforms are beginning to yield tangible results, particularly in reducing clearance delays and simplifying documentation processes.

A New Benchmark for Efficiency

With the combination of strong leadership, digital innovation, and collaboration between public and private sector actors, the Apapa Command is fast becoming a model for customs modernization across West Africa. The record-setting revenue of ₦304 billion stands as a clear indication that Nigeria’s ports can deliver higher efficiency and transparency when properly managed.

As Comptroller Oshoba noted, “Our goal is not just to collect revenue, but to create a trade environment that is fast, fair, and future-ready. This record shows that we are on the right path.”

With sustained reforms, the Apapa Command is projected to surpass ₦2.8 trillion in annual revenue by December 2025 — a milestone that would reinforce its reputation as Nigeria’s most productive customs formation and a critical pillar of the country’s economic resilience.