Foreign Investors Increase Bets on Nigeria’s Eurobonds, Rates Ease
The average yield on Nigeria’s sovereign eurobonds eased as foreign portfolio investors ’boosted the investment positions as macroeconomic indicators improved. The country’s inflation rate has been falling for three consecutive months, gross domestic product (GDP) surged by 3.13% in the first quarter of 2025, and the authority has decided to maintain a high interest rate economy.
Bola Tinubu, the Nigerian president, has also obtained senate approval to raise $21 billion in foreign loans, while local bond supply has been tightened. Borrowing costs from international capital markets are expected to reduce as all global ratings agencies have upgraded Nigeria’s credit ratings in support of the economic reforms.
US dollar inflows have increased as foreign investors’ confidence has grown due to global ratings agencies approval of President Tinubu’s administration’s economic reforms.
On Tueasay, the Nigerian Eurobond market closed on a bullish note, buoyed by strong investor demand across the yield curve—particularly in the FEB-2032 bond. Consequently, yields declined, with the average yield falling by 3 basis points to settle at 8.50%, investment banking firm Cowry Asset Management Limited said in a note.
Based on trading details, African Eurobonds sustained positive ground as U.S. President Trump called the FED chair a “numbskull” and began to count down his remaining tenure in office. Nigerian Eurobonds traded on a mixed note with a mild buy-side bias, reflecting cautious optimism among investors as average yields dropped 3 bps.
The Fed chair’s neutral stance and absence of hawkish cues promote a mildly bullish outlook for Nigerian Eurobonds, as stable U.S. yields encourage cautious risk-on positioning, AIICO Capital Limited said in its commentary note. #Foreign Investors Increase Bets on Nigeria’s Eurobonds, Rates Ease Nigerian Exchange Roars as Equity Investors Gain N395bn
