Emerging Markets: Türkiye Eyes $5B Trade Deal as Nigeria Secures Power Sector Funding

Bilateral economic ties between Türkiye and Nigeria are set for a significant expansion following high-level talks, while Nigeria's domestic debt market signals growing investor confidence in the energy sector despite ongoing infrastructure hurdles.

Erdogan Targets $5 Billion Trade Volume

President Recep Tayyip Erdogan outlined an ambitious roadmap to increase trade volume between Türkiye and Nigeria to $5 billion. Speaking during President Bola Tinubu‘s visit, the Turkish leader emphasized the strategic importance of deepening commercial relations with Africa’s largest economy.

This move is viewed by analysts as part of Türkiyes broader strategy to diversify its export markets and stabilize the Turkish Lira (TRY) through strengthened geopolitical partnerships. For Nigeria, expanding non-oil trade partnerships remains a critical component of its economic recovery plan.

Investor Confidence in Power Sector Reforms

Domestically, Nigeria's Federal Government recorded a 100% subscription rate for its inaugural N501 billion power sector bond. Issued under the PPSDRP, the full subscription signals robust institutional appetite for Nigerian sovereign debt.

• Target Trade Volume: $5 billion
• Power Sector Bond: N501 billion (100% subscription)
• Key Currencies: TRY, NGN

Infrastructure Challenges Persist

The Nigerian Independent System Operator (NISO) confirmed that a recent national grid collapse was triggered by a voltage disturbance at the Gombe transmission substation. While the bond provides liquidity, the disconnect underscores headwinds facing the Nigerian Naira (NGN).