Nigerian Eurobonds rally as Nov 2025 maturity nears
Nigerian Eurobond yields declined in the international market as foreign portfolio investors stepped up purchases ahead of the redemption of the $1.18 billion November 2025 note.
The improved sentiment reflects stronger confidence in Nigeria’s ability to meet its external obligations, supported by ongoing reforms and about $47 billion in gross external reserves as recently disclosed by the Central Bank.
The Debt Office had earlier raised $2.85 billion from the external market to fund the 2025 budget and support the planned redemption.
Investor appetite was also boosted by shifting expectations around United States monetary policy after fresh unemployment data revived hopes of a December interest rate cut.
The latest Federal Open Market Committee minutes confirmed a 25 basis-point reduction in key policy rates, though Federal Reserve Chair Jerome Powell signalled the pace of cuts could slow, keeping markets watchful. US 10-year Treasury yields continue to hover around 4 per cent.
The broader African Eurobond market also strengthened as investors sought higher yields across major frontier and emerging issuers.
Nigeria, Ghana, Angola and Egypt recorded firm buying interest, with Nigerian papers gaining the most traction. Cowry Asset Limited reported increased positioning in the maturing November 2025 instrument, while AIICO Capital Limited said average Nigerian Eurobond yields fell by 6 basis points to 7.63 per cent as confidence improved.
