Nigeria’s currency witnessed mixed performance across markets on Wednesday, November 5, 2025, as the federal government successfully raised $2.35 billion from its Eurobond issuance, an offer that was oversubscribed by more than 400% in the international market.

While the naira depreciated in the official window, it strengthened on the parallel market, significantly narrowing the gap between the two exchange rates.

Official window weakens amid dollar demand

According to data from the Central Bank of Nigeria (CBN), the naira weakened by 0.34% at the Nigerian Foreign Exchange Market (NFEM), closing at ₦1,438 per dollar, compared to ₦1,438 on Tuesday.

Intraday trading saw the currency touch a high of ₦1,446 per dollar, reflecting increased demand for dollars for international transactions, while some trades were executed at lows of ₦1,435 per dollar.

Market Forces Africa reported that the naira has lost ₦17 against the US dollar since the beginning of the week, partly driven by market uncertainty following threats from US President Donald Trump.

Parallel market strengthens as investor sentiment improves

In contrast, the naira appreciated on the parallel market by 2.49%, closing at ₦1,443 per dollar, supported by improved dollar inflows and stronger investor sentiment.

At the same time, Nigeria’s external reserves climbed to $43.28 billion, with analysts noting the figure could cover up to 12 months of imports, a positive sign of economic resilience.

Investors show confidence despite geopolitical tensions

Despite diplomatic strains and Nigeria’s recent designation by the United States as a Country of Particular Concern, global investors displayed confidence in Nigeria’s financial instruments.

The country successfully issued $2.35 billion in Eurobonds with maturities in 2036 and 2046, a move that underscores sustained investor interest in Nigeria’s sovereign debt.

Debt office confirms strong global participation

According to the Debt Management Office (DMO), the Eurobond issuance comprised $1.2 billion in 2036 maturities and $1.1 billion in 2046 maturities.

The two tranches were priced at yields of 8.63% and 9.13%, respectively. The DMO noted that the bonds attracted investors from across the US, Europe, Asia, the Middle East, and Nigeria, reflecting broad-based international confidence.

A turnaround from early-week market panic

The successful Eurobond sale marks a sharp reversal from market sentiment earlier in the week, particularly on Monday, November 3, 2025, when the naira tumbled and investors fled Nigerian assets following Trump’s threats of a possible military strike against Nigeria.

Now, analysts say the strong Eurobond uptake demonstrates renewed confidence in the country’s fiscal direction and its ability to attract foreign capital despite ongoing geopolitical uncertainties.