Consultants have advisable bonds as a secure funding possibility in Nigeria, highlighting their capability to ship constant returns regardless of the nation’s ongoing macroeconomic challenges.
This suggestion was mentioned in an episode of “Drinks and Mics” titled “How a International Recession Will Affect Nigeria,” that includes trade consultants similar to Ugo Obi-Chukwu, CEO of Nairametrics; Tunji Andrew, CEO of Awabah; Ola Oladele, founding father of The Cash Wit Membership; and Arnold Dublin Inexperienced, Chief Funding Officer at Cordros Capital.
As they mentioned potential funding choices contemplating Nigeria’s {economic} difficulties, Ola Oladele remarked, “The stables are usually not unhealthy. Regardless of the turbulence, Nigeria remains to be constant in bond coupon funds.”
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She highlighted the attraction of high-yield bonds, mentioning the 10-year bond, which affords yields nearing 20%. “Investing N100 million in a 10-year Nigerian bond might yield N20 million in curiosity over the last decade whereas making certain that your authentic N100 million capital is returned,” she defined.
Arnold Dublin Inexperienced echoed this view, expressing a desire for high-coupon bonds and favouring short-term treasury payments with a one-year maturity.
When discussing equities, the consultants advisable excessive dividend-paying stocks, mentioning GTCO and palm oil corporations like Presco and Okomu Oil for his or her dependable efficiency within the inventory market.
Nigeria Eurobond rise
Latest information from Nairalytics, sourced from the Debt Administration Workplace (DMO), reveals a big enhance within the yields of Nigerian Eurobonds, which have reached a median of 11.21% as of Wednesday, April 9, 2025.
- This displays a rise of 163 foundation factors from 9.584% on the finish of March.
- These yield ranges are the very best since February 2020, when the COVID-19 pandemic started.
In keeping with Nairametrics’ analysis staff, the rise might be attributed to a current determination by U.S. President Donald Trump to implement a ten% import tariff on all international items, which exerted further strain on the Nigerian Eurobond market, leading to elevated selloffs and prompting the DMO to boost yields.
April FGN financial savings bonds
In early April 2025, the Debt Administration Workplace (DMO), representing the Federal Authorities of Nigeria (FGN), introduced the opening of subscriptions for the April 2025 issuance of the FGN Financial savings Bond.
In keeping with the DMO’s official discover, the bond choices are structured as follows:
- 2-Yr FGN Financial savings Bond maturing on April 16, 2027: 16.046% each year
- 3-Yr FGN Financial savings Bond maturing on April 16, 2028: 17.046% each year
Subsequent coupon funds will probably be made quarterly on July 16, October 16, January 16, and April 16 annually.
In keeping with consultants on the Drinks and Mics, the Nigerian authorities persistently meets its coupon fee obligations for bonds, making them comparatively secure even amid turbulent macroeconomic situations.
