Nigeria Eyes $1 Billion Eurobond, Taps Citigroup, JPMorgan, and Goldman Sachs as Advisers

Nigeria, Africa’s leading oil producer, is exploring the possibility of raising external funds through a Eurobond issuance in 2024. This move aims to bridge a gap in government spending.

Nigeria hired investment banks including Citigroup Inc., JPMorgan Chase & Co., and Goldman Sachs Group Inc. to advise it on the West African nation’s first Eurobond issue since 2022, according to people familiar with the deal.

The size of the Eurobond offer, which is expected before June, has yet to be determined, said the people who asked not to be identified because they’re not authorized to comment publicly on the matter.

Africa’s largest oil producer may raise as much as $1 billion in external borrowing this year to meet its spending needs, they said

Reports also indicate that Nigeria has secured additional advisors, including Standard Chartered Bank and the Lagos-based firm Chapel Hill Denham.

Notably, Nigeria’s Finance Minister, Wale Edun, is the founder of Chapel Hill Denham Group.

The company emphasizes its role in providing comprehensive financial guidance to a broad range of clients, encompassing governments, multinational corporations, and financial institutions.

In a recent collaboration with the Global Energy Alliance for People and Planet (GEAPP), Chapel Hill Denham facilitated the creation of a local currency debt instrument named the Energy Transition & Access Facility for Africa (ETAFA).

This initiative aims to channel $50 million towards supporting renewable energy projects within Nigeria.

President Tinubu’s recently signed 2024 budget reflects a planned expenditure of N28.7 trillion with a N9.8 trillion deficit. To bridge this gap, the government anticipates relying on borrowed funds.

Notably, the 2024 budget signifies a 26% increase compared to the 2023 budget presented by the previous administration.