Nigeria’s debt market jumps to ₦91.99trn as yields spike on sell pressure

Nigeria’s debt market expanded to ₦91.99 trillion last week, up 3.59%, as yields surged across segments amid heavy sell pressure and expectations of further CBN tightening.

Data from FMDQ Group showed a sharp rise in borrowing costs for both sovereign and corporate issuers, reversing weeks of yield moderation.

Analysts linked the sell-offs to investors demanding higher returns, positioning ahead of the January 2026 Capital Gains Tax, and geopolitical tensions after U.S. President Donald Trump’s military threat against Nigeria, which also wiped over ₦2 trillion off equities.

Corporate bond yields rose modestly: Dangote Industries (2032) to 17.69%, Axxela Funding (2027) to 20.35%, and NSP-SPV PowerCorp (2034) to 17.02%.

Commercial papers from Dangote Sugar and UAC Nigeria climbed to 23.96% and 22.86%, respectively.

Bond futures gained slightly as investors bet on future yield moderation.

Money market rates also tightened, with Overnight rates up to 24.79%.

With inflation high and monetary policy still restrictive, analysts expect yields to stay elevated.

Attention now turns to the November 24 FGN bond auction, seen as a key test for pricing against Lagos State’s ₦200bn bond.