Nigeria, Egypt, Angola Eurobonds Buckle as Yields Surge Amid Global Sell-Off
SAMUEL MOBOLAJI
The African Eurobond market slumped this week as investors offloaded sovereign debt from Nigeria, Egypt, and Angola, driving yields higher across the curve and underscoring the fragility of oil-linked economies in the face of global uncertainty.
Nigeria’s sovereign segment bore the brunt of the sell pressure, with average benchmark yields climbing 4 basis points to 7.10 per cent, according to AIICO Capital Limited. The February 2032 bond recorded the sharpest expansion, rising 7 basis points to 6.94 per cent, while the January 2031, December 2034, January 2036, January 2046, and September 2051 maturities each added 6 basis points. Traders described the sell-off as broad-based, with weakened interest and cautious sentiment evident across the entire yield curve.
Egypt, still emerging from fiscal weakness in 2025, faced renewed investor scepticism, while Angola’s debt came under strain as crude prices slipped. Analysts warned that both Angola’s and Nigeria’s fiscal outlooks remain tightly bound to oil revenues, leaving them vulnerable to further declines in global commodity prices.
The sell-off was triggered by a combination of global factors. Higher-than-expected U.S. jobless claims rattled investor sentiment, while the Bank of England’s dovish interest rate decision fueled risk-off positioning. Oil prices eased ahead of U.S.–Iran nuclear talks scheduled in Oman, undermining fiscal confidence in oil-dependent issuers.
Market watchers expect volatility to persist, with the next chapter hinging on the outcome of Friday’s diplomatic negotiations between Washington and Tehran. Traders say the direction of African Eurobonds will likely mirror the trajectory of oil prices, leaving Nigeria, Egypt, and Angola exposed to further swings in global investor sentiment.
