Dell PowerEdge FN I/O Module Configuration Guide 9.10(0.0)

For EBGP neighbors, the next-hop address is the IP address of the connection between the neighbors. For IBGP, the EBGP next-hop address is carried into the local AS. A next hop attribute is set when a BGP speaker advertises itself to another BGP speaker outside its local AS and when advertising routes within an AS. The next hop attribute also serves as a way to direct traffic to another BGP speaker, rather than waiting for a speaker to advertise.

The system allows you to set the next hop attribute in the CLI. Setting the next hop attribute lets you determine a router as the next hop for a BGP neighbor.