Nigeria has begun laying the groundwork for its return to the international debt market, seeking advisers for a planned Eurobond sale, following a heavily oversubscribed issuance last November.

The Debt Management Office (DMO) has invited qualified financial institutions and professional firms to submit expressions of interest to act as transaction advisers for the proposed Eurobond, expected to be part of the government’s external borrowing programme for 2026. The advisers will include financial, legal, and other specialist roles required to structure and execute the issuance.

The planned transaction marks an early but significant step in Nigeria’s strategy to re-enter global capital markets, which it largely stayed away from over the past two years due to elevated global interest rates and volatile financial conditions that sharply increased borrowing costs for emerging and frontier economies.

Officials say the Eurobond would help support budget financing needs, refinance existing obligations, and provide additional resources for infrastructure spending as the government seeks to balance fiscal pressures with development priorities. The final size and timing of the issuance will depend on market conditions and investor demand after advisers are appointed.

The move comes amid improving sentiment toward Nigerian assets, driven by ongoing economic reforms, exchange rate adjustments, and efforts to stabilise macroeconomic fundamentals.

These measures have helped restore a degree of investor confidence, with international lenders and portfolio managers increasingly signalling renewed interest in Nigerian sovereign instruments.

Finance officials have also pointed to growing external financing options, including bilateral and multilateral inflows, as evidence that Nigeria is gradually regaining access to diversified funding sources. However, authorities maintain that Eurobonds remain a critical component of the country’s financing mix, particularly for longer-tenor funding and liability management operations.

Market analysts note that appointing advisers is a standard preparatory step that allows the government to move quickly once market windows become favourable. With global yields showing signs of easing from recent peaks, several frontier markets have recently returned to international bond markets, raising expectations that Nigeria could follow a similar path.

Nigeria has also recently tapped alternative external funding sources, including a multibillion-dollar financing arrangement with First Abu Dhabi Bank, as part of efforts to ease foreign exchange liquidity pressures and support budget execution.

The Debt Management Office has not disclosed the planned size or maturity structure of the Eurobond, stressing that such details will be determined after advisory appointments and a full assessment of market conditions.

If successfully executed, the issuance would mark Nigeria’s re-engagement with international investors at scale, broaden its funding base, and potentially help reduce refinancing risks associated with more expensive short-term borrowing.