International investors have rushed into Nigeria's domestic debt market, with holdings reaching $15-16 billion by early 2025 following the naira's devaluation. The reforms have unlocked 20 percent yields on short-term government bills, attracting global funds seeking higher returns than traditional emerging markets. Nigeria's central bank reserves stand at $50 billion, providing some buffer against potential outflows.

TLG Capital has launched Nigeria's first naira-denominated fund for private credit, targeting institutional investors with returns 3-5 percentage points above government bonds. The initiative addresses a critical gap in financing for small businesses, with the country's pension system alone managing over N20 trillion ($14 billion) in assets. Falcon Aerospace recently secured a $10 million loan through TLG's model, which works with local banks using guarantees as collateral.

Market volatility remains a concern, as demonstrated by the Iran conflict's impact on both Nigerian and Egyptian bonds. The naira briefly weakened against the dollar during the selloff, though analysts expect higher oil prices to support the currency long-term. Nigeria's government continues efforts to expand its tax base beyond 10 percent of GDP while managing short-term debt refinancing needs.