Nigeria’s Eurobonds yields rise to report excessive as commerce warfare sparks large selloffs
In a dramatic flip of occasions, Nigeria’s Eurobond market has come below heavy strain, echoing the shockwaves rippling by world {financial} markets.
A daring and controversial transfer by U.S. President Donald Trump, who just lately introduced a sweeping 10% import tariff on all overseas items, alongside retaliatory levies concentrating on nations with ‘unfair commerce practices’, has triggered unfavorable market reactions.
As traders scrambled to reassess danger, Nigerian Eurobonds noticed sharp selloffs, sending common yields surging to 11.21% by Wednesday, April 9, 2025—up by a staggering 163 foundation factors from 9.584% on the finish of March.
That is based on knowledge tracked by Nairalytics from the Debt Administration Workplace (DMO).
The present ranges symbolize the very best for the reason that starting of the Covid-19 pandemic, in February 2020. Notably, the quick finish of the curve recorded the very best promote strain, with the Nov 2025 rising by 282bps over the identical interval.
Equally, the yield on the lengthy finish of the curve (Sep 2051) rose by 97bps to hit 11.65%, having moderated barely from the report excessive of 12.12% recorded earlier within the week.
Equally, the continuing world commerce tensions have contributed to a big drop in worldwide crude oil costs, with Brent crude now buying and selling at $63.7 per barrel. This, mixed with decreased home oil production, is prone to additional pressure Nigeria’s overseas change earnings and exert extra strain on the already weakening naira.
The native foreign money has depreciated by roughly 4.8% month-to-date, closing at N1,625/$ on Tuesday, regardless of persistent interventions by the Central {Bank}. These developments have fueled investor considerations, resulting in elevated selloffs in Nigerian Eurobonds as danger sentiment deteriorates.
Professional view
In an unique interview, Mr. Victor Onyema, Head of Funding Administration at Norrenberger Asset Administration Restricted, attributed the current spike in Nigeria’s Eurobond yields primarily to President Donald Trump’s tariff announcement, however expressed optimism a few potential stabilization within the close to time period.
“Over the previous week, we’ve witnessed a big surge in world Eurobond yields, with Nigeria’s devices significantly affected. Notably, the NIG 2051 bond traded as excessive as 12.5%—ranges we haven’t seen for the reason that COVID-19 pandemic,” Onyema defined.
- He additional famous that the newly launched tariffs and the intensifying commerce tensions between the U.S. and China have triggered a wave of danger aversion, prompting traders to hunt refuge in safer property.
“The present uncertainty is driving a flight to high quality. Nevertheless, we anticipate some degree of stabilization throughout the subsequent week or two, because the market begins to digest and totally worth within the implications of those developments,” he added.
What to anticipate
Within the coming weeks, world consideration will stay firmly fastened on the unfolding dynamics between the US and China, because the world watches how different nations reply to Washington’s sweeping tariff hike.
- Whereas negotiations might emerge in a bid to de-escalate tensions, the rapid influence on world markets has been profound—spilling into each variable and stuck earnings property.
- The worry of a possible world recession is turning into extra pronounced, particularly as market contributors brace for a extra aggressive financial coverage stance from the U.S. Federal Reserve.
With expectations of as much as 4 or 5 rate of interest hikes now on the desk, traders are prone to stay cautious, positioning their portfolios defensively till larger readability emerges.
