Nigeria’s sovereign bond yields are expected to remain elevated through the third quarter of 2026 as investors factor in increased government borrowing, rising inflation, and a prolonged tight monetary policy environment, according to a new report by Coronation Research.
The investment research firm said the federal government’s decision to double its June bond offer to N1.2 trillion from N600 billion at the previous auction marked a turning point in domestic debt issuance, signalling stepped-up financing needs and prompting investors to demand higher returns on longer-dated securities.
“June marked a sharp reversal as the Debt Management Office doubled the offer size to N1.2 trillion, its largest single bond auction of the year and a clear signal of stepped-up domestic financing needs,” Coronation said.
“With investors asked to absorb twice the volume they had grown accustomed to, the market demanded a higher yield to clear the larger supply.”
The Debt Management Office offered the bonds through the reopening of the February 2035 and April 2037 Federal Government of Nigeria instruments.
