Nigeria’s Eurobond market witnessed a decline in investor confidence this week as yields climbed 10 basis points to 8.27%, reflecting market uncertainty ahead of the country’s $1.1 billion Eurobond repayment due in November.
Fixed-income analysts observed a consistent upward trend in U.S. dollar-denominated Nigerian sovereign bonds, attributing the rise to investor caution amid global economic headwinds and shifting risk sentiment.
Despite the recent pressure, analysts believe Nigeria’s borrowing costs could decline in the coming months, citing improved macroeconomic indicators and potential rating upgrades. The government is also expected to raise an additional $2.3 billion in Eurobond issuance in Q4 2025.
Across African markets, Eurobond trading has been broadly negative as investors continue to favor safe-haven assets ahead of an anticipated U.S. Federal Reserve interest rate cut. The prolonged U.S. government shutdown and declining oil prices have also weighed on investor sentiment.
Last week’s trading saw African dollar bonds trending lower amid weaker crude oil prices. Nigeria’s bonds were not spared, with mid-curve papers such as the March 2029 and February 2030 maturities climbing 44bps and 22bps to 7.70% and 7.71%, respectively.
Shorter-term bonds performed slightly better, with the November 2025 note yield declining by 26bps to 6.73%, as investors favored short-duration instruments to hedge against global interest rate uncertainty.
At the longer end, bonds maturing between 2049 and 2051 remained largely stable, suggesting that investors are still pricing Nigeria’s fiscal strength and oil revenue outlook conservatively.
Meanwhile, global markets remain tense amid renewed U.S.-China trade frictions, weakening oil demand, and heightened geopolitical risks. Gold prices have surged past $4,000 per ounce, indicating a global shift toward risk-off assets.
Market watchers expect bearish sentiment to persist in the near term as investors closely monitor global trade developments, oil price trends, and Nigeria’s debt management strategy ahead of the upcoming Eurobond repayment.
