Nigeria’s dollar-denominated Eurobonds have experienced a dramatic sell-off, marking their worst performance in 17 months, according to Bloomberg.
This decline has been exacerbated by nationwide protests against the government’s economic policies, which continue despite President Bola Ahmed Tinubu’s appeal for dialogue and suspension.
On Monday, the Nigerian dollar debt and US Treasuries saw a widening of 46 basis points to 715, the largest single-day increase since March 2023, as reported by JPMorgan Chase & Co. This turmoil has placed five of Nigeria’s Eurobonds among the worst performers in a Bloomberg index of emerging and frontier sovereign debt.
The 2051 securities were particularly affected, with prices plummeting to 73.06 cents on the dollar, the lowest close since November 2023. This downturn reflects investor concerns over the potential impact of the ongoing protests on the government’s economic strategy and stability.
