Nigerian Eurobond Yield Rises to 8.54% as FPIs Trim Holdings
The average yield on Nigerian Eurobond yield rose slightly in the international market as foreign portfolio investors (FPIs) trimmed their portfolio holdings amidst renewed US tariff threats.
Trading activities in the market closed on a bearish note, driven by broad-based sell-offs across the short-, medium-, and long-term tenors, with the SEP-2028 bond witnessing the most significant pressure.
Consequently, average yields rose, resulting in 3 basis points increase to 8.54% as investors started to weigh the negative impacts of renewed tariff threats in the global markets.
Analysts reported that foreign investors adopted a cautious tone as new tariff threats weighed on sentiment. The US plans 25% duties on Japanese and South Korean imports from August, plus a 10% levy on BRICS-aligned nations.
These warnings followed BRICS’ criticism of US trade policy at their recent summit. Nigerian Eurobond yields edged up 3 bps amid the uncertainty.
The market anticipates the current market mood to persist, with rising oil prices offering key support to Nigerian and Angolan bonds.
Nigeria’s economy is on course for steady growth in H2 2025, supported by improving macro conditions, with the World Bank projecting 3.6% growth, CBN 4.2%, and the IMF 3%.
A planned GDP rebasing to 2019 will capture emerging sectors like fintech and entertainment, likely boosting official GDP. Growth depends on reform execution, macro stability, and external risk management.
Inflation trended lower in the first half of 2025, supported by naira stability and slower energy cost increases. Headline inflation dropped to 22.97% in May from 24.48% in January, with monthly inflation falling to 1.58% from 10.71%.
Food and core inflation also eased, averaging 21.14% and 22.6%, respectively. Despite this moderation, prices remain high. 2025FY inflation is projected to average 21.00% year on year. #Nigerian Eurobond Yield Rises to 8.54% as FPIs Trim Holdings#
