Nigeria's Eurobond yields reach 8.2% as investors demand higher premiums for long-term debt
Nigeria's dollar-denominated Eurobonds are trading with yields as high as 8.2 percent, indicating that investors continue to demand a premium for holding the country's long-term sovereign debt. Data from the Debt Management Office, sourced from Bloomberg, shows that yields on Nigeria's 15 outstanding Eurobond issues ranged from 5.625 percent to 8.156 percent as of August 31, 2026. The highest yield was observed on Nigeria鈥檚 8.25 percent $1.25 billion Eurobond due in September 2051, closing at 8.156 percent. This trend highlights the higher return investors require for committing funds to Nigeria for extended periods, with higher yields generally reflecting increased perceived risk or greater return expectations. In contrast, Nigeria鈥檚 shorter-dated Eurobonds are trading at significantly lower yields, such as the 6.5 percent $1.5 billion November 2027 bond yielding 5.625 percent. This yield curve demonstrates a clear premium for Nigeria鈥檚 longer-term dollar obligations, as investors seek additional compensation for the risks associated with holding debt over 15 to 25 years. Despite this, several of Nigeria鈥檚 Eurobonds are trading above their face value, suggesting stronger market pricing than their original coupons alone would imply. For instance, the 10.375 percent $1.5 billion December 2034 Eurobond closed at $119.428, yielding 7.211 percent, which is below its initial coupon rate. A Lagos-based fixed income analyst, Yetunde Oriji, explained that when a bond trades above its
