Nigeria’s Eurobond market has felt the sting of rising geopolitical tensions and fluctuating oil prices, which have triggered an increase in yield.
The average yield on the Eurobond increased to 9.17 percent on Monday, from 8.79 percent the previous Monday.
Conversely, the average price declined to $92.26 on Monday from $94.15.
According to analysts at Meristem, the bearish run this week is as a result of concerns over the U.S. tariff policies and potential sanctions on Russia, which weakened global risk appetite, prompting investors to scale back exposure to emerging market assets.
Last week, President Trump signed an executive order increasing tariffs on Chinese imports from 10 percent to 20 percent, In response, China announced on the same day that it would impose additional tariffs on various U.S. agricultural products.
These measures took effect on March 10, 2025.
Specifically, a 15 percent tariff was levied on U.S. chicken, wheat, corn, and cotton, while a 10 percent tariff was applied to sorghum, soybeans, pork, beef, aquatic products, fruits, vegetables, and dairy products.
“Additionally, the U.S. administration’s consideration of new tariffs on Russia and trade negotiations tied to Iran’s nuclear program add to geopolitical uncertainty, which could impact global energy markets and investor confidence.”
“The unpredictability of these trade policies increases market volatility, discourages investment, and raises concerns about a prolonged slowdown in global trade and economic recovery,” Meristem noted in a report.
Also, the decline in oil prices during the week, Nigeria’s key revenue source, further fuelled the downturn.
Compounding the pressure of falling prices, Nigeria’s crude production fell 1.47 million barrels per day in February, down from 1.54 million barrels per day in January, according to figures released by the Nigerian Upstream Petroleum Regulatory Commission.(BusinessDay)
