By Atoyebi Nike
Yields on Nigeria’s Eurobonds have increased across various maturities, according to data released by the Debt Management Office (DMO) on Wednesday, August 6, 2025. The rising yields suggest that investors are becoming more cautious about the country’s economic outlook and rising debt levels.
The shortest-term bond, maturing in November 2025, recorded a yield of 5.59%, down from its original issuance yield of 7.625%, indicating continued investor interest in short-term instruments. However, longer-term bonds saw yields climb significantly. The September 2051 Eurobond, for example, now yields 9.68%, up from 8.25% at issuance. Similarly, the 2047 bond rose from 7.625% to 9.55%, and the 2038 bond from 7.696% to 9.07%.
Bond prices have dropped in response to the yield increases, with longer-dated bonds now trading below par. The 2051 bond is priced at 86.44 cents on the dollar, reflecting increased risk perception.
Analysts attribute the upward trend in yields to concerns over Nigeria’s fiscal position, currency depreciation, and the government’s growing debt burden, which recently crossed ₦121 trillion.
The increase in yields could raise borrowing costs for Nigeria in future Eurobond issuances, making external financing more expensive and putting further pressure on the country’s already stretched public finances.
