Nigeria’s Eurobond market sees a significant decline in yields as foreign investors actively engage in the international debt market. The average yield drops by 13 basis points to 9.49%, fueled by positive expectations for Nigeria’s economic prospects this year.
The drop in yields is attributed by market analysts to increased bargain hunting across various maturities on the yield curve. As expectations for rate cuts by the U.S. Federal Reserve rise, global investors are seeking safer assets. This trend has boosted capital flows into African markets like Nigeria, where yields remain relatively high.
The market also reflects investor confidence in Nigeria’s monetary policies aimed at combating inflation. Traders note that while the year starts with mixed activity, stronger momentum develops midweek, particularly for Nigerian, Angolan, and Egyptian sovereign bonds.
Angola and Nigeria lead a rally in the Eurobond market, supported by rising oil prices, while Egypt benefits from anticipated International Monetary Fund (IMF) support that could unlock $1.2 billion in funding. By the end of the week, Nigerian bonds for November 2025 and February 2032 show the most significant declines in yield, with drops of 29 basis points and 21 basis points, respectively.
While the Eurobond market is seeing a bullish tone, analysts remain cautious, closely monitoring global macroeconomic conditions. The expectation is that foreign portfolio investments (FPIs) will continue to take advantage of attractive yields, keeping the market buoyant in the short term.
The coming week is likely to witness sustained investor interest, driven by elevated yields and improving sentiment about Nigeria’s economic trajectory. However, global economic shifts, including U.S. monetary policy adjustments and commodity price fluctuations, will remain key factors shaping the market.
This trend highlights the need for effective fiscal and monetary policies to keep Nigeria appealing to international investors while tackling domestic economic issues.
