By Boluwatife Oshadiya | September 3, 2026
Key Points
- Nigeria’s 15 outstanding Eurobonds traded at yields between 5.625% and 8.156% at the end of August
- The September 2051 Eurobond recorded the highest yield at 8.156%, reflecting a stronger premium on long-term sovereign debt
- Several existing bonds traded above face value, indicating continued demand despite elevated risk premiums
Main Story
Nigeria’s Eurobond yields rose as high as 8.156% on August 31, 2026, signalling that investors continue to demand higher returns for holding the country’s longer-dated dollar debt. Data published by the Debt Management Office (DMO), with market information sourced from Bloomberg, showed that yields across Nigeria’s 15 outstanding Eurobond issues ranged from 5.625% to 8.156%.
The highest yield was recorded on the 8.25% $1.25 billion Eurobond due in September 2051, which closed at $100.983 with a yield of 8.156%. The January 2049 bond yielded 8.076%, while the January 2046 issue recorded 8.058%.
Shorter-dated securities traded at significantly lower yields. The November 2027 Eurobond yielded 5.625%, while the September 2028 bond recorded 5.924%, highlighting the premium attached to longer-term Nigerian sovereign exposure.
Several securities also traded above their $100 face value. The December 2034 bond closed at $119.428 and yielded 7.211%, while the June 2031 bond traded at $112.391 with a yield of 6.553%.
The higher market prices mean investors buying these securities in the secondary market receive yields below the coupons attached to the bonds when they were originally issued.
What’s Being Said
“When a bond trades above its face value, its effective yield falls below its coupon rate, while bonds trading below par generally offer higher effective yields,” said Yetunde Oriji, a Lagos-based fixed income analyst.
What’s Next
Investors will continue to monitor movements in Nigeria’s longer-dated Eurobonds for changes in sovereign risk pricing and demand for external debt.
The yield curve will also remain important if the Federal Government considers returning to the international debt market, as elevated long-term yields could increase the cost of new borrowing and refinancing.
Bottom Line
The Bottom Line: Nigeria’s Eurobond market is showing a split signal: several existing bonds remain attractive enough to trade above par, but investors still demand a significantly higher return for taking longer-term sovereign risk. That combination could keep future external borrowing expensive even as demand for some outstanding securities remains firm.
