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Nearly $3bn spent on Eurobond debt servicing under Tinubu

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The Federal Government has spent about $2.93bn servicing Eurobond debt across eight quarters under President Bola Tinubu, according to an analysis of external debt-service records published by the Debt Management Office.

The data, covering Q3 2023 to Q2 2025, show that Eurobond obligations alone accounted for 31.5 per cent of Nigeria’s total external debt service of $9.32bn over the two years.

More striking is the structure of the payments: interest charges consumed $2.43bn out of the $2.93bn spent on Eurobonds, meaning that 83 per cent of all Eurobond servicing in the period went to interest rather than principal.

This reflects the costliness of Nigeria’s dependence on commercial borrowing and suggests that expensive debt will remain a major burden on government finances for several years.

Tinubu assumed office in May 2023, making Q3 2023 the first full quarter under his administration. That quarter was also the most expensive within the two-year window, as Nigeria redeemed a maturing Eurobond.

The country paid a total of $943.66m in Eurobond obligations in Q3 2023, comprising a $500m principal redemption and $443.66m in interest. Nigeria’s total external-debt servicing for the period stood at $1.39bn, meaning Eurobonds alone accounted for 67.8 per cent of the entire foreign-debt bill that quarter.

It remains the quarter with the highest Eurobond share under the Tinubu administration. In Q4 2023, Eurobond servicing fell sharply as no principal was due. The government paid $148.57m, all of it interest, while total external-debt servicing amounted to $943.17m, and Eurobonds accounted for just 15.8 per cent of the total in the quarter.

Nigeria’s Eurobond obligations resumed their upward climb in Q1 2024, when the government paid $282.57m in interest. Total external-debt servicing for the quarter was $1.12bn, giving Eurobonds a 25.2 per cent share.

The pattern strengthened in Q2 2024, when Eurobond interest payments rose to $293.73m. With total foreign-debt servicing at $1.12bn, Eurobonds accounted for 26.2 per cent. These two quarters showed a reappearance of heavy commercial-debt costs within Nigeria’s external obligations, even outside redemption periods.

A significant spike appeared in Q3 2024, when Eurobond servicing hit $427.72m. This was entirely interest payment, and it pushed Eurobond payments to 31.9 per cent of the total external-debt service of $1.34bn. Q3 quarters are increasingly emerging as heavy repayment windows due to the structure of Nigeria’s Eurobond coupons, and 2024 followed that pattern.

The cost dropped again in Q4 2024, mirroring the drop in Q4 2023. Eurobond servicing stood at $148.57m, while total external-debt service was $1.08bn. This placed the Eurobond share at 13.8 per cent, the lowest in the two-year period.

However, the relief was short-lived. Eurobond obligations surged back to $427.72m in Q1 2025, matching the level recorded in Q3 2024. Nigeria’s total external debt servicing for the quarter reached $1.39bn, placing the Eurobond share at 30.7 per cent.

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The repeated spikes in Q3 2024 and Q1 2025 highlight the growing weight of interest charges on Nigeria’s fiscal operations and the clustering of Eurobond coupons around similar maturity cycles. In Q2 2025, the most recent quarter in the records, Eurobond servicing fell to $260.07m, entirely interest.

Nigeria’s total external-debt servicing was $932.10m, giving Eurobonds a 27.9 per cent share. The PUNCH observed that Nigeria is spending far more on servicing existing Eurobonds than on reducing the underlying principal.

Of the $2.93bn spent on Eurobonds, only $500m went toward reducing the debt stock; the remaining $2.43bn was consumed by interest. The data also show that Eurobonds took between 13.8 per cent and 67.8 per cent of Nigeria’s total external-debt service in each quarter under review.

Further analysis by The PUNCH showed that Nigeria’s Eurobond commitments stood at $17.32bn as of June 2025, accounting for 36.86 per cent of the country’s total external debt, according to the data from the DMO.

This marks an increase from $15.62bn in June 2023, when Eurobonds represented 36.19 per cent of external debt. The data show that Nigeria’s Eurobond stock rose by $1.70bn between the two periods — a 10.88 per cent increase — indicating the country’s growing exposure to high-interest commercial debt.

In September, the Federal Executive Council approved plans to raise $2.3bn through Eurobond sales as part of the 2024–2025 borrowing plan, with an additional $1.1bn set aside to refinance maturing foreign obligations. The National Assembly also endorsed the foreign borrowing.

By November, Nigeria raised $2.35bn from international investors through a dual-tranche Eurobond issuance that attracted a record $13bn in bids, the Debt Management Office said in a statement.

The offer, split between a 10-year and a 20-year note, represents Nigeria’s largest order book in the international capital market and comes as the Federal Government moves to plug its 2025 fiscal deficit and broaden its funding sources amid ongoing fiscal and monetary reforms.

The Eurobond comprised $1.25bn due in 2036 and $1.10bn due in 2046, with the 10-year note priced at 8.63 per cent and the 20-year at 9.13 per cent.

According to the DMO, the sale drew participation from investors in the United Kingdom, North America, Europe, Asia, the Middle East, and Nigeria, cutting across fund managers, pension and insurance funds, hedge funds, banks, and other financial institutions.

The agency said the $13bn orderbook was “the largest ever” for Nigeria, reflecting strong appetite from a broad mix of buyers. The notes will be listed on the London Stock Exchange, FMDQ Securities Exchange Limited, and the Nigerian Exchange Limited.

In the DMO statement, President Bola Tinubu said the investor response showed continued confidence in the Nigerian economy and reaffirmed the country’s credibility in global debt markets.

“We are delighted by the strong investor confidence demonstrated in our country and our reform agenda. This development reaffirms Nigeria’s position as a recognised and credible participant in the global capital market,” Tinubu was quoted as saying.

Also, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the outcome underscored international trust in the government’s reform drive and commitment to fiscal stability.

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DMO Director-General, Patience Oniha, said tapping long-term financing through the Eurobond market aligned with the strategy of supporting economic growth while reducing pressure on short-term domestic borrowing.

“Nigeria’s ability to access the Eurobond Market to raise long-term funding needed to support the growth agenda of President Bola Tinubu is a major achievement for Nigeria and is consistent with the DMO’s objectives of supporting development and diversifying funding sources,” Oniha said in the statement.

According to the DMO, proceeds from the issuance will be used to finance the 2025 budget deficit and meet other government funding needs. The transaction was arranged by Chapel Hill Denham, Citigroup, Goldman Sachs, J.P. Morgan, and Standard Chartered Bank as joint bookrunners, while FSDH Merchant Bank acted as financial adviser.

Nigeria last accessed the Eurobond market in December 2024, when it raised $2.2bn. The latest issuance, achieved amid tight global credit conditions and rising borrowing costs, signals that the country still has access to external financing despite the fiscal pressures it faces.

Nigeria’s foreign exchange reserves are projected to rise to $45bn by the end of 2025, driven by strong investor confidence following the country’s successful $2.3bn Eurobond issuance, according to investment house CardinalStone.

It also estimated that Nigeria’s year-end debt level would rise to N166.7tn (42.2 per cent of GDP). In a separate assessment, Comercio Partners described the Eurobond’s success as a “positive signal” for Nigeria’s fiscal outlook.

However, it warned that the gains could be undermined if exchange rate instability resurfaces.

“On one hand, the inflow boosts external reserves, provides fiscal breathing space, and enhances the government’s capacity to meet short-term obligations. On the other hand, it raises exposure to foreign exchange risk and heightens interest burdens in hard currency,” Comercio Partners said.

Experts react

Financial analysts have offered mixed assessments of Nigeria’s rising reliance on Eurobond borrowing, warning that while the instruments provide quick access to capital, they also carry cost and refinancing risks that could strain government finances if not managed prudently.

Reacting to the DMO data showing that Nigeria spent $2.93bn servicing Eurobonds across eight quarters—83 per cent of which went to interest—investment professionals said the country must balance ease of access with long-term repayment pressures.

The Managing Director/CEO of Arthur Stevens Asset Management Limited, Olatunde Amolegbe, said Eurobonds would continue to feature in Nigeria’s financing mix because of their speed and flexibility.

He noted that governments typically use a combination of debt options, explaining that “there will always be a need to have a mix of debt instruments depending on cost, timing, and speed of execution.”

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Amolegbe said Eurobonds remain attractive because they are “relatively easy sources of debt” and usually free of the “onerous conditions” that accompany multilateral loans, even when the latter appear cheaper.

He added that borrowing was unavoidable for countries with large infrastructure needs, stressing that Nigeria’s concern should be disciplined deployment and repayment capacity. “Inasmuch as those funds are being deployed appropriately and we maintain the ability to meet repayment terms, then it’s not much of an issue,” he said.

A Lagos-based economist, Adewale Abimbola, downplayed the risks, arguing that Nigeria had maintained a strong repayment history. According to him, “I don’t think there’s any significant risk. Nigeria has always been meeting its Eurobond obligations,” citing the recent oversubscription as evidence of investor confidence.

Abimbola said borrowing was acceptable if tied to productive projects and warned that excessive domestic borrowing could crowd out private investment.

He argued that external commercial debt remained viable as long as interest-rate and exchange-rate exposures were controlled. “As long as interest, market, and exchange-rate risks are carefully managed, I don’t see any risk,” he said, adding that the recent currency recovery meant “currency risk will almost be inexistent if reforms are sustained.”

He noted that Eurobonds are inherently costlier because “commercial loans have higher interest compared to bilateral or multilateral loans,” referencing Nigeria’s latest issuance priced at 8.75 per cent for the 10-year and 9.25 per cent for the 20-year notes.

Finance professional and research analyst, Dayo Adenubi, offered a more cautious view, describing Eurobonds as “market-driven financing” that gives governments and corporates faster access to long-term capital but at a high cost.

He explained that repayment terms are dictated by investors and investment banks, which price the issuer’s credit risk. “It’s easy to get, but it’s more expensive,” he said. Adenubi warned that Eurobonds delay the principal burden until maturity, which encourages serial refinancing.

“You pay coupons semi-annually and the principal at maturity, so it postpones the day of judgement,” he said, noting that most issuers “use a new one to refinance once it’s time to pay.”

He cautioned that failure to achieve the expected returns on projects funded by Eurobonds could lead to distress. “If the projects do not turn out as successful as forecasted, there’s risk of default, which can get very ugly,” he said, pointing to Ghana, Sri Lanka, and Kenya as recent cautionary tales.

According to him, while multilateral loans remain cheaper and domestic borrowing theoretically easier, Eurobonds require disciplined macroeconomic management to avoid refinancing traps. “If the economy improves and the government’s finances improve, you can refinance with better terms,” he said.

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Police comb forest after terrorists abduct NECO students in Borno

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The Borno State Police Command has deployed security operatives to Lassa community in Askira/Uba Local Government Area following the abduction of an unspecified number of students writing the National Examinations Council examinations by suspected terrorists.

PUNCH Online had earlier reported that the attackers stormed the school at about 9 a.m. on Monday, shooting sporadically before abducting students and women selling food items within the school premises.

Confirming the deployment to PUNCH Online, the spokesperson for the Borno State Police Command, Nahum Daso, said security operatives confronted the attackers, preventing a larger-scale abduction.

“Around 9 a.m. in the morning, ISWAP attacked Lassa Day Secondary School. They shot sporadically. An unspecified number of students have been abducted.

“Security forces confronted them. For now, we have an unspecified number of students who were abducted. The CP deployed the Area Commander in Askira/Uba. They are currently combing the bush,” Daso said.

The Special Adviser to Adamawa State Governor, Ahmadu Fintiri, on Media and Strategy, Mr Solomon Kwamagar, a resident of Lassa, also confirmed the incident to PUNCH Online on Monday morning.

He disclosed that the attackers arrived on motorcycles and invaded the school.

“Today is Lassa market day. I was informed that they came through the market on motorcycles and went to Government Day Secondary School, Lassa. They shot and killed one teacher and took away all the students who were in their classrooms,” he said.

Kwamagar added, “Lassa in Borno State is predominantly inhabited by my people, the Margi. We are in both Adamawa and Borno states. I am from Lassa, but I chose to reside in Madagali Local Government Area of Adamawa State.”

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He further said, “I’m still making contacts to ascertain the total number of students and teachers who were kidnapped from the school.”

Earlier, the President of the Borno South Youth Alliance, Samaila Kaigama, told PUNCH Online that the attackers wore military and forest guard uniforms.

“Yes. There was an attack on students writing NECO exams. The terrorists came around past nine. They passed the military checkpoint. They wore military and forest guard attire. They shot sporadically,” he said.

Kaigama said one teacher was killed while another sustained gunshot injuries.

“They killed one teacher from Chibok. They shot another, but not dead yet. They also kidnapped some students and women selling on the school premises. The numbers are not yet out,” he said.

When contacted, the Chairman of Askira/Uba Local Government Area, Mada Saidu, declined to comment.

“I am very busy now. We are in a situation,” he said.

Efforts to obtain comments from the state Commissioner for Information and Internal Security, Usman Tar, were unsuccessful as he neither answered calls nor responded to messages.

However, residents who spoke to PUNCH Online claimed that two teachers and one student were killed during the attack.

“They killed two teachers and one female student. The student was shot in her mouth,” a resident who requested anonymity said.

On May 16, PUNCH Online reported that 42 students and pupils were abducted after suspected Boko Haram terrorists attacked Mussa Primary and Junior Secondary School in Askira/Uba Local Government Area.

The senator representing Borno South, Ali Ndume, had said the abductees comprised four students of Government Day Secondary School, 28 primary school pupils and 10 children abducted from their homes.

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NASS sends state police bill to 36 states’ assemblies

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The National Assembly is set to transmit the Constitution Alteration Bill seeking the establishment of state police to the 36 state Houses of Assembly this week, marking the next critical stage of one of Nigeria’s most far-reaching security reforms.

The development comes days after the Senate passed the landmark constitutional amendment, with lawmakers now racing to secure the approval of at least 24 state legislatures before the bill can be transmitted to President Bola Tinubu for assent.

Chairman of the Senate Committee on Media and Publicity, Yemi Adaramodu, disclosed the development in an exclusive interview with The PUNCH on Sunday, saying all the necessary arrangements had been concluded for the transmission.

According to him, the state legislatures and governors were already awaiting the bill following consultations held ahead of its passage by the National Assembly.

“The bill for the creation of state police will get to the states this week. The states’ speakers have met and are awaiting the bill from the National Assembly.

“The state governors are expecting it too, even with their presence in the Senate chamber when the bill was being considered and passed,” Adaramodu said.

The planned transmission signals the beginning of the final constitutional hurdle for the proposed amendment, which requires endorsement by not less than two-thirds of the 36 state Houses of Assembly in line with Section 9 of the 1999 Constitution before it can become law.

Momentum has continued to build behind the proposal since the Senate approved the amendment after a clause-by-clause consideration of the report presented by the Senate Committee on the Review of the Constitution, chaired by Deputy Senate President Barau Jibrin.

The legislation seeks to establish a dual policing structure that will empower state governments to establish and maintain police services within their jurisdictions while preserving the constitutional responsibilities of the Nigeria Police Force over national security matters such as terrorism, border security, cybercrime, arms trafficking and other federal offences.

To address longstanding concerns over possible abuse by state governments, lawmakers incorporated several safeguards into the bill, including provisions prohibiting state police authorities from targeting individuals or groups for criticising governments and empowering the Federal Government to intervene in cases involving threats to national security, breakdown of public order or violations of fundamental human rights.

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The proposed reform has received unprecedented backing from governors, speakers of state legislatures and major political stakeholders across the country.

The Conference of Speakers of State Legislatures in Nigeria had earlier endorsed the bill, with its Chairman and Speaker of the Delta State House of Assembly, Emomotimi Guwor, assuring Nigerians that all state houses of assembly would give the proposal diligent consideration.

Several governors have also welcomed the amendment, describing it as a timely response to worsening insecurity across the federation.

Among them, Benue State Governor, Hyacinth Alia, described the Senate’s passage of the bill as a landmark step towards strengthening Nigeria’s security architecture, arguing that state police would possess a better understanding of local terrain and community dynamics, thereby improving intelligence gathering and response to criminal activities.

Similarly, the Forum of Progressive Speakers of State Legislatures under the All Progressives Congress pledged to facilitate speedy ratification in APC-controlled houses of assembly while promising robust oversight mechanisms to ensure professionalism and respect for human rights.

The Labour Party also threw its weight behind the proposal, describing the Senate’s action as a significant milestone in the quest to strengthen internal security through community-based policing.

Though it acknowledged concerns over possible abuse by governors, the party expressed confidence in the constitutional safeguards embedded in the amendment.

The proposal also attracted opposition from the Peoples Redemption Party, which questioned the timing of the initiative and urged Nigerians to reject it, arguing that the current administration lacks the credibility to oversee such a fundamental restructuring of the country’s policing system.

Despite the reservations expressed by critics, the planned transmission of the bill to the states this week is expected to trigger deliberations across the 36 Houses of Assembly, where lawmakers will conduct public hearings, stakeholder engagements and legislative scrutiny before voting on the constitutional amendment.

If at least 24 state assemblies endorse the proposal, it will pave the way for President Bola Tinubu’s assent, potentially ending decades of debate over the decentralisation of policing and ushering in what many stakeholders believe could be the most significant reform of Nigeria’s internal security architecture since the return to democratic rule in 1999.

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Meanwhile, the Senate on Sunday defended the passage of the state police bill, insisting that its passage, which 84 senators supported, is a response to Nigeria’s worsening security challenges.

The upper chamber said the bill emerged from years of consultations, public engagements, and broad national consensus, stressing that it would be wrong to delay the proposal for political calculations ahead of the 2027 general election.

The position comes amid growing debate over the constitutional amendment bill, with supporters arguing that decentralising policing will improve security at the grassroots, while critics fear that state police could be abused by governors to intimidate political opponents.

Defending the Senate’s decision in a statement issued by his media office on Sunday, the Leader of the Senate, Opeyemi Bamidele, said the proposal was “purely a child of necessity and not of political expediency as well as a product of national consensus and not of cynicism.”

He maintained that the establishment of state police had become a matter of urgent national importance that should not be sacrificed because of anyone’s political ambition.

According to him, the process leading to the passage of the bill did not begin recently but evolved through extensive constitutional review engagements involving key stakeholders across the country.

Despite some dissenting views, Bamidele said observations had shown that Nigerians largely welcomed the passage of the bill with the belief that it would significantly improve security at the sub-national level.

He said, “The state police proposal was part of memoranda submitted to the Senate Ad hoc Committee on the Review of the 1999 Constitution. The memorandum had been subjected to a rigorous process and multi-tiered consultation across the federation due to its sensitive nature.

“During this process, the National Assembly broadly consulted the executive, the Nigeria Governors’ Forum, the Conference of Speakers of the State Legislatures of Nigeria and the leadership of the Nigeria Police, among others.

“In July 2025, the National Assembly conducted public hearings in all geopolitical zones, and the participants overwhelmingly approved it.

“At each level of our consultation, nearly all stakeholders embraced the State Police Bill in the light of stark realities we are facing today.”

The Senate Leader said the Nigerian Police actively contributed to the drafting of the constitutional amendment by offering recommendations that helped lawmakers build safeguards against potential abuse of state police by political actors.

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According to him, those recommendations formed part of accountability and oversight mechanisms embedded in the legislation to ensure that state police operate within constitutional limits.

He added that the willingness of the Nigerian Police to support the proposal underscored its strategic importance in addressing insecurity at the local and state levels.

Beyond the contributions of the police hierarchy, Bamidele said the bill was subjected to extensive debates in both chambers of the National Assembly before its eventual passage.

He noted that support for the legislation cut across party lines.

He said: “Even though the APC is the majority, there are members of opposition parties – PDP, ADC, NDC and Labour Party – that exercised their discretion in favour of the Bill, mainly in the national interest and not on a parochial basis.

“In the Senate, for instance, 84 out of 109 members voted clause by clause in support of the Bill. This accounted for 77.06 per cent approval at the Senate alone.”

Bamidele argued that security should transcend political affiliations, noting that countries facing security threats often unite behind reforms aimed at strengthening national safety.

Globally, he said, security “is a collective public good that benefits citizenry across ethnic, political and religious divides.

“Political actors elsewhere always throw off their togas of partisanship and parochialism to support initiatives that will boost and reinforce national security.”

He, therefore, urged opposition parties to contribute constructive ideas that would strengthen peace and stability across the federation rather than oppose initiatives solely on political grounds.

Bamidele also challenged opposition parties and leaders to come forward with ideas that would deepen the peace and stability of the federation.

“Even when they disagree on some grounds, they are under obligations to provide credible and useful ideas that can make our nation better and greater. Unfortunately, they have not passed this critical test of opposition democracy,” Bamidele said.

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Chaos as flooding shuts Lagos airport temporary terminal

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There was chaos at the temporary terminal of the Murtala Muhammed International Airport, Lagos, on Sunday after heavy rainfall caused severe flooding at the facility.

The departure hall, boarding gates, airline temporary offices, and other sections of the makeshift terminal were submerged. The situation forced the Federal Airports Authority of Nigeria to shut the terminal abruptly, as airlines operating from the facility could no longer process passengers.

As a result of the flooding, airlines, including Air France-KLM, Ethiopian Airlines, and Fly Gabon, were relocated from the terminal. According to officials, the terminal’s powerhouse was also flooded, forcing the authorities to switch off electricity.

Consequently, all airlines operating from the facility were moved to Terminal Two of the MMIA. FAAN officials alleged that the flooding was caused by blocked drainage channels, which they attributed to the Chinese company currently reconstructing the old international terminal.The incident came just months after FAAN shut the old MMIA terminal for a major reconstruction project estimated to cost more than N600bn. A few months ago, a fire also broke out at the old terminal, damaging parts of the facility.

Sources said the ongoing reconstruction of the old terminal by the Chinese contractor has caused several disruptions at the airport.

Reacting to Sunday’s flooding, FAAN spokesperson Henry Agbebire confirmed the incident, attributing it to the ongoing construction work at the airport.

According to Agbebire, the construction temporarily affected the drainage system, resulting in flooding. He said, “It was the construction works that affected the drainage. And for operational reasons, we have moved airlines operating from that terminal to Terminal 2, and the development has not really affected their operations.

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“There were no cancellations at all. We have taken immediate action to fix that problem to the extent that it doesn’t happen again. You can rest assured of that.”

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