Nigeria’s Eurobond yields have climbed as high as 8.2 per cent, signalling that international investors are still demanding a significant premium to hold the country’s long-term dollar-denominated debt. The rise comes despite stronger prices recorded on several outstanding securities, highlighting the mixed sentiment surrounding Nigeria’s sovereign bonds.
Data from the Debt Management Office, sourced from Bloomberg, showed that yields across Nigeria’s 15 outstanding Eurobond issues ranged from 5.625 per cent to 8.156 per cent at the close of trading on Monday, August 31, 2026. The highest yield was recorded on the 8.25 per cent $1.25bn Eurobond maturing in September 2051, which closed at $100.983 with a yield of 8.156 per cent.
Other long-dated securities also recorded yields above eight per cent. The 9.248 per cent $750m bond due in January 2049 yielded 8.076 per cent, while the 9.129 per cent $1.1bn Eurobond maturing in January 2046 offered a yield of 8.058 per cent. In contrast, shorter-dated bonds attracted lower yields, with the 6.5 per cent $1.5bn November 2027 bond yielding 5.625 per cent and the 6.125 per cent $1.25bn September 2028 bond yielding 5.924 per cent.
The pricing pattern suggests that investors are demanding greater compensation for the risks associated with holding Nigeria’s debt over longer periods. At the same time, some existing Eurobonds are trading above their $100 face value, indicating that demand for selected Nigerian securities remains relatively strong. For example, the 10.375 per cent $1.5bn December 2034 bond traded at $119.428, producing a 7.211 per cent yield, while the 9.625 per cent $700m June 2031 bond traded at $112.391 with a 6.553 per cent yield.
For Nigeria, the elevated long-term yields could make fresh borrowing from international debt markets more expensive and potentially raise refinancing costs for existing external obligations. A Lagos-based fixed-income analyst, Yetunde Oriji, said the market was showing a clear distinction between investor appetite for existing Nigerian dollar debt and the risk premium attached to longer-term sovereign exposure. “Nigeria’s existing dollar debt remains attractive enough to trade above par in several cases, but investors continue to demand a sizable risk premium for taking on the country’s sovereign exposure over longer periods,” she said.
source: punch
