Nigerian Eurobonds Expected to Yield Double-Digit Returns

According to a recent report by VNL Capital Asset Management, Nigerian Eurobonds are projected to yield double-digit returns by 2026, supported by Nigeria's enhanced external buffers and a steady trend of disinflation. The report highlights the impact of rising crude oil prices, which have surged above $95 per barrel amid heightened tensions in the Middle East, contributing to inflationary pressures.

It anticipates a higher interest rate environment, which could lead to a widening yield across sovereign and corporate papers. The report draws comparisons to past energy shocks, noting that yields rose by 400 basis points in 2022 due to similar factors.

It recommends a strategic investment approach focusing on the short to medium segment of the yield curve to attract returns while ensuring downside protection. In November 2025, Nigeria successfully raised $2.35 billion through Eurobond issuance, receiving overwhelming investor interest with a $13 billion order, marking the largest order book in the nation's history.

The issuance included two tranches: a $1.25 billion 10-year note maturing in 2036 and a $1 billion 20-year note maturing in 2046.