In a clear sign of improving investor sentiment, yields on Nigeria’s sovereign Eurobonds fell in international markets ahead of the upcoming external-borrowing programme that includes a US$2.85 billion issuance plus a US$500 million Sukuk offering. The move reflects heightened appetite for Nigerian debt ahead of the maturity of a US$1.12 billion note originally issued in 2018.
According to investment-firm reports, the benchmark average yield dropped by 20 basis points within a week, landing at approximately 7.59% on Friday. The broader African Eurobond market saw mixed trading throughout the week but maintained an overall bullish tilt. Early optimism stemmed from hopes of reduced U.S.–China trade tensions, triggered by remarks from former President Donald Trump regarding tariff sustainability. However, investors remained cautious amid lingering global uncertainties, even as the oil-price rebound and softer-than-expected U.S. inflation data toward week’s end helped revive risk appetite.
The federal government’s external-borrowing strategy includes refinancing the maturing 7.63% bond that matures in November 2025, enabling Nigeria to manage refinancing risk and maintain its external-debt profile. The target amount of roughly US$2.35 billion plus the targeted US$500 million Sukuk underscores a proactive posture toward debt strategy.
Analysts note that the month-on-month yield decline of about 35 basis points for Nigerian Eurobonds signals a stronger investor acceptance of higher-yielding African sovereign debt. With Nigeria preparing fresh issuance and demonstrating refinancing discipline, sentiment in the Eurobond space is expected to remain mildly bullish heading into November.
