Nigerian Bonds Face Selloffs after Disinflation Reversal
A reversal to disinflation stoked selling pressure in Nigerian bonds, as investors’ returns came under risk amid spot rate repricing across the fixed-income market.
In the secondary market, trading activity was subdued, though it remained bearish, pushing average yields up 1bp to 15.85%.
Fixed-income market analysts said the yield surge signalled a dampening of domestic investor confidence and a weakening appetite for naira-denominated sovereign debt.
Investors maintained a cautious stance amid lingering global uncertainties and market participants’ reaction to the higher-than-expected consumer price index print of 15.38%.
The inflation surge reversed an 11-month trend that began in April 2025 after the statistics office released a rebased consumer price index figure.
In its commentary note, AIICO Capital Limited said performance across the curve was mixed, with selective pressures observed at key maturities. The investment firm reported that the 15-May-2033 bond experienced selling pressure, expanding by 6bps to close at 16.37%.
Meanwhile, the 21-Feb-2034 bond attracted notable demand, compressing its yield by 12bps to settle at 16.28%. Mild upward movements were recorded on the 23-Feb 2028, 26-Apr-2029, and 18-Apr-2037 papers, each of which inched higher by 1bp.
Investment analysts noted slight buying interest in the 20-Mar-2028 and 21-Feb-2031 bonds, easing by 1 bp. Most other maturities closed unchanged. Seplat Energy Tops N10k Per Share
