Nigeria’s sovereign Eurobonds rallied in the global market, with yields slipping by two basis points as foreign portfolio investors increased their exposure amid growing confidence in the country’s short-term credit outlook.
The sustained decline in yields reflects improved investor sentiment, driven by expectations that Nigeria will comfortably meet upcoming debt obligations—particularly the Eurobond set to mature in November. Market optimism has been buoyed by ongoing domestic economic reforms and recent upgrades to Nigeria’s credit rating by international agencies including S&P Global, Moody’s, and Fitch Ratings.
The positive momentum also follows Nigeria’s successful removal from the International Monetary Fund’s debt list, a development interpreted by investors as a sign of enhanced fiscal discipline and sovereign creditworthiness.
According to Cowry Asset Management, strong demand for the NOV-2027 bond contributed significantly to the day’s performance, pulling the average Eurobond yield down to 8.20%. The firm noted broad-based interest across Nigeria’s dollar-denominated debt instruments.
Across the broader African Eurobond space, prices strengthened as geopolitical tensions—particularly the prospect of new U.S. sanctions on Russia—boosted appetite for emerging market assets. Nigeria’s sovereign bonds benefited from the shift, registering a mild but steady rally along the curve.
Analysts say the trend suggests reduced external borrowing costs for Nigeria, potentially easing the burden of future capital market engagement.
