The average yield on Nigeria’s sovereign Eurobonds spiked to approximately 11% in the international market, as foreign portfolio investors and asset managers trimmed their holdings in response to heightened global risk aversion and a flight to safer assets. Market analysts attribute the bearish sentiment to intensifying global trade tensions and the growing appeal of risk-free instruments.
The protectionist stance of the U.S. government under President Donald Trump—now affecting over 180 countries with elevated tariffs—has led to calls for a reevaluation of globalization and international trade dynamics. During the past week, Nigeria’s Eurobond market experienced broad-based sell-offs across short-, mid-, and long-term maturities. The September 2028 and March 2029 issues were hit hardest, reflecting investors’ move away from riskier emerging market assets.
According to AIICO Capital, African Eurobonds had a turbulent week as investor behavior turned increasingly risk-averse. The combination of worsening trade disputes and falling oil prices further exacerbated market anxiety.
Investor sentiment took a sharp hit midweek, following the announcement of new, sweeping U.S. tariffs that triggered fears of a global recession. As oil prices plunged and equity markets in the U.S. nosedived, Nigerian Eurobond yields soared in response to the exodus of foreign capital.
China’s swift retaliation—imposing a 34% tariff on U.S. goods—fueled further uncertainty, prompting investors to continue shifting toward safer assets. The result: Nigerian Eurobond yields surged by 118 basis points week-on-week to close at 10.77%, marking a six-month high.
Analysts note that increasing trade tensions, oversupply in the oil market, and weakening demand are combining to create significant headwinds for global markets. These risks have amplified fears of a U.S. recession and triggered a wave of de-risking across African economies.
TrustBanc Financial Group Limited reported that yields jumped across the curve, with the November 2027 and March 2029 maturities recording the sharpest increases—up by 174 bps and 158 bps, respectively. Market traders expect the bearish trend to persist unless a positive catalyst emerges either internationally or domestically to restore investor confidence.
