Nigerian banks are facing a significant financial challenge as Eurobond obligations totaling approximately $2.35 billion come due between the fourth quarter of 2025 and 2026. This debt burden, spread across five major banks, comes at a time of heightened capital pressures driven by currency devaluation, regulatory tightening, and ongoing recapitalization efforts.
The earliest maturity is First Bank of Nigeria’s $350 million Senior Unsecured Eurobond, set to mature in October 2025. Issued in 2020, this was the first Eurobond from a Nigerian lender since 2017.
Next is Ecobank Nigeria’s $300 million Senior Unsecured facility maturing in February 2026. The bank has proactively tendered to buy back $150 million of the bond to lower interest costs and is negotiating to permanently remove the capital adequacy covenant on the remainder of the note. This comes after the naira devaluation in early 2024 drove its capital adequacy ratio below the 10% benchmark, prompting a temporary waiver until September 2025.
Access Bank faces the largest repayment burden, with two Eurobonds maturing in late 2026:
- A $500 million Senior Unsecured Eurobond (coupon: 6.125%) maturing in September 2026.
- Another $500 million Additional Tier 1 capital bond (coupon: 9.125%) maturing in October 2026.
This brings Access Bank’s total maturing Eurobond obligations to $1 billion.
Fidelity Bank’s $400 million Eurobond (coupon: 7.625%) is due by October 2026, followed by UBA’s $300 million Eurobond (coupon: 6.75%) set to mature in November 2026.
According to Fitch Ratings and Renaissance Capital, Nigerian banks hold $7.7 billion in net foreign assets—more than enough to cover the $2.35 billion in maturing Eurobonds. However, this doesn’t negate the increasing capital strain.
The confluence of maturing external debt, elevated domestic borrowing costs, regulatory forbearance unwinds, and the Central Bank of Nigeria’s recapitalization mandate is reshaping balance sheet strategies. Banks may have to:
- Raise fresh equity to meet capital adequacy requirements,
- Refinance maturing debt in an unfavorable global environment,
- Or seek long-term foreign funding to stay afloat.
Failure to adapt may force banks to curb credit growth, limit dividend payouts, and compress capital buffers, creating ripple effects across Nigeria’s financial system.
As deadlines approach, how banks respond will determine not only their resilience but also their role in stabilizing Nigeria’s broader economic recovery.
