Nigeria’s fastened revenue yields rose considerably final week on promote stress throughout segments of the market, with complete debt dimension leaping to N91.99 trillion, as traders demanded larger returns amid expectations of additional financial tightening by the Central Bank of Nigeria (CBN).
Information launched by FMDQ Group Plc for the week ended November 7, 2025, confirmed that the whole debt market dimension expanded to N91.99 trillion, up 3.59% week-on-week (WoW), suggesting a pointy rise in charges or price of borrowing in each sovereign and company debt devices.
The bounce in rates of interest, which lifted debt market dimension, contrasts sharply with the pattern in earlier weeks when yields had been seen moderating throughout board, with valuation of the debt market crashing to about N87 trillion.
Analysts attribute the twist in sentiments to promote stress, the place new traders are demanding larger charges to compensate for short-term liquidity pressures. Exiting traders’ sell-offs had been in anticipation of contemporary auctions.
Nonetheless, some analysts stated the promote stress was a strategic transfer to flee the Capital Good points Tax coming into impact by January 2026, amid geopolitical rigidity triggered by US President Donald Trump’s risk of army motion in opposition to Nigeria has additionally triggered panic gross sales within the equities market final week, ensuing to over N2 trillion losses in equities valuation.
Within the Treasury Payments section, the 5-Feb-2026 invoice noticed essentially the most vital rise, with yields up 56 foundation factors to 16.23%, suggesting traders demanded larger returns for short-term devices. The 7-Could-2026 and 5-Nov-2026 payments additionally edged up marginally by 6bps and 2bps, respectively.
Yields on benchmark sovereign bonds had been broadly steady, reflecting reasonable demand within the secondary market. The 17-Apr-2029 bond inched up 10bps to fifteen.87 per cent, whereas the Mar-2036 and Apr-2049 papers held regular at 15.67 per cent and 15.57 per cent, respectively.
This delicate improve in shorter-dated paper suggests traders are positioning forward of anticipated inflation information and upcoming FGN bond reopenings.
Company debt devices recorded combined efficiency.
In the meantime, short-term Business Paper yields for Dangote Sugar Refinery Plc and UAC of Nigeria Plc improved barely to 23.96% and 22.86%, respectively, amid renewed company funding demand.
Bond futures costs strengthened throughout maturities. The 12M/17-SEP-2026 2Y FGN Bond Future gained to 107.58, whereas the 10Y FGN Bond Future (12M/17-SEP-2026) superior to 132.08, reflecting delicate bullish sentiment amongst traders anticipating yields to reasonable in coming months.
Within the cash market, in a single day charges rose barely as liquidity thinned. Open Repos had been flat at 24.50%, whereas In a single day charges elevated by 7bps to 24.79%, indicating tighter interbank liquidity.
With inflation nonetheless trending excessive and the CBN sustaining a restrictive financial stance, analysts count on borrowing prices to stay elevated within the coming weeks. The rise in yields throughout Treasury payments, bonds, and company papers indicators a harder financing setting for issuers however might appeal to overseas and institutional traders looking for larger actual returns.
Nonetheless, market sentiment this week could possible hinge on the upcoming FGN bond public sale scheduled for November 24, the place pricing relative to Lagos State’s latest N200 billion bond issuance will likely be intently watched for danger premium differentials.
