Abuja, Nigeria – Nigeria’s Eurobonds have extended their March downtrend, with average yields on 11 Federal Government issues rising to 7.47% by March 27, up from about 7.18% on March 6, 2026. The rise reflects a broad‑based repricing of risk as global and domestic uncertainties push investors to demand higher returns for holding Nigerian sovereign debt.
Okay News reports that data from the Debt Management Office show yields increasing modestly in early March but accelerating sharply in the final week, with jumps of 0.22 to 0.41 percentage points across maturities. Short‑dated notes such as the 2027 and 2028 bonds saw yields climb from roughly 5.9% to 6.2–6.4%, while mid‑tenor bonds (2030–2033) moved from 6.5–7.4% to 6.8–7.7%. The 2032 bond registered the largest weekly jump.
Long‑dated Eurobonds bore the heaviest repricing, with the 2038–2051 segment moving from 7.9–8.5% to up to 8.7%, and the 2047 bond trading near its lowest price of N91.10. The 2049 bond, still above par at N105.92, also saw its yield climb to 8.7% from 8.3–8.4%. The pattern signals that investors are increasingly wary of long‑term exposure to Nigeria, even as the government continues to rely on dollar‑denominated bonds for external‑reserves support.
Analysts say the higher yields do not add to Nigeria’s current interest‑cost burden, since coupon payments are fixed at issuance. Charles Fakrogha of ECL Asset Management explains that the extra cost only appears if Nigeria issues fresh Eurobonds, which must be priced at or above the new market rates. Blakey Ijezie of Okwudili Ijezie & Co adds that sellers exiting in the secondary market accept discounts, while new buyers capture higher effective yields by holding to maturity.
The shift from an average yield of 7.18% to 7.47% places Nigeria in the mid‑to‑high yield bracket, reflecting an elevated sovereign‑risk perception. The trend coincides with recent naira weakness and tighter global financial conditions, which make external borrowing more expensive if the government decides to tap Eurobond markets again. For now, the repricing is a sign of market discipline, but it also raises the stakes for Nigeria’s future debt‑management strategy.
