Nigeria’s Eurobond yields traded below their original issue rates on Tuesday, signalling improved investor sentiment toward the country’s sovereign debt profile.
Data released by the Debt Management Office Nigeria showed that several Eurobond instruments recorded yields lower than their coupon rates as of February 24, 2026, reflecting stronger demand in the secondary market.
The 9.625 per cent $700 million June 2031 Eurobond, for instance, closed with a yield of 6.338 per cent, significantly below its 9.625 per cent issue rate. Similarly, the 8.375 per cent $1.25 billion March 2029 Eurobond traded at a yield of 5.776 per cent, compared to its initial 8.375 per cent rate.
Other instruments followed the same trend. The 6.500 per cent November 2027 Eurobond recorded a yield of 5.269 per cent, below its issue rate of 6.500 per cent, while the 10.375 per cent December 2034 Eurobond closed at 7.240 per cent against its original 10.375 per cent coupon.
Market data sourced from Bloomberg also showed price appreciation across several maturities. The December 2034 Eurobond peaked at $120.100, while the June 2031 bond traded at $114.555, underscoring renewed investor appetite for Nigeria’s long-dated debt.
Analysts say yields trading below issue rates typically indicate that bonds are priced above par value in the secondary market, a sign of improving credit perception and sustained demand.
Longer-dated instruments also reflected the trend. The January 2049 Eurobond, issued at 9.248 per cent, recorded a yield of 8.156 per cent, while the September 2051 Eurobond closed at 8.170 per cent compared to its 8.250 per cent issue rate.
The broad-based decline in yields comes amid ongoing fiscal reforms and efforts by the Federal Government to stabilise macroeconomic conditions and strengthen external reserves.
With yields moderating across key maturities, market watchers believe Nigeria’s Eurobond market may continue to attract offshore investors seeking relatively high returns in emerging markets, provided global financial conditions remain supportive.
