Nigeria is set to redeem a $500 million Eurobond this month, although the country still faces numerous economic difficulties.
According to information from the Debt Management Office, the bond was purchased at a coupon rate of 6.375% annually five years ago and the $500 million Eurobond loan is now due for repayment this month in accordance with its terms.
However, Nigeria may have already secured the funds or redeemed the bond.
Eurobond debts are normally repaid from the country’s foreign reserves or through a separate fund set up for this purpose.
The decline in crude oil sales has caused a $3 billion decrease in the external reserves this year. Cash flow has also been impacted by a lack of attracting international portfolio investments.
This is also not the first time Nigeria has repaid a Eurobond, following repayments in 2018, 2021, and 2022. The country paid back $300 million last year and $500 million in 2021.
Nigeria maintains a zero percent default rate whereas other sub-Saharan countries, including Ghana, have defaulted and renegotiated loan terms.
