Nigeria’s Eurobond Yields Rise to 8.2% as Investors Price in Sovereign Risk

Nigeria’s longest-dated dollar bonds are yielding more than 8 percent, showing the premium investors demand to hold the country’s sovereign debt for decades.

Data from the Debt Management Office, sourced from Bloomberg, showed that yields on Nigeria’s 15 outstanding Eurobond issues ranged from 5.625 percent to 8.156 percent at the close of trading on Aug. 31, 2026. The highest yield belonged to the 8.25 percent, $1.25 billion bond due in September 2051. It closed at $100.983.

The 9.248 percent, $750 million bond due in January 2049 yielded 8.076 percent, while the 9.129 percent, $1.1 billion bond due in January 2046 yielded 8.058 percent. The levels reflect the additional return investors seek when committing funds to Nigeria for 15 to 25 years.

Shorter maturities traded at lower yields. The 6.5 percent, $1.5 billion bond due in November 2027 yielded 5.625 percent, and the 6.125 percent, $1.25 billion bond due in September 2028 yielded 5.924 percent. The pattern gives Nigeria’s debt a clear long-term yield premium.

Several bonds also traded above their face value. The 10.375 percent, $1.5 billion bond due in December 2034 closed at $119.428 and yielded 7.211 percent, below its original coupon. The 9.625 percent, $700 million bond due in June 2031 traded at $112.391 and yielded 6.553 percent. “When a bond trades above its face value, its effective yield falls below its coupon rate, while bonds trading below par generally offer higher effective yields,” said fixed-income analyst Yetunde Oriji. The pricing offers a measure of how international investors view Nigeria’s debt and the cost the country could face when it next borrows abroad.

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When a bond trades above its face value, its effective yield falls below its coupon rate, while bonds trading below par generally offer higher effective yields.