Nigeria’s Eurobond maturing in November 2025 came under heavy selling pressure on Wednesday, alongside other dollar-denominated sovereign papers, as foreign investors trimmed positions amid concerns over declining domestic yields and potential monetary policy shifts.
Despite improved macro indicators, including a drop in headline inflation to 22.22 percent, analysts warn that expectations of an eventual rate cut by the Central Bank of Nigeria (CBN) could dampen foreign appetite for naira assets. Elevated domestic yields have been a key magnet for offshore inflows, and any move away from a high-rate environment may trigger capital flight, putting fresh strain on the naira.
“The economy cannot afford a large-scale dollar outflow at this point, as it would be challenging for the local currency to withstand,” an investment expert cautioned.
The Eurobond market closed bearish, with pronounced sell pressure on the NOV-2025 paper driving yields higher. Average yield across Nigeria’s Eurobond curve jumped 13 basis points to 8.67 percent, according to Cowry Asset. The weakness was mirrored across several African Eurobonds as risk sentiment soured amid falling oil prices.
