Nigeria's Borrowing Costs Drop as Fixed-Income Yields Fall

On February 19, 2026, Nigeria experienced a decline in borrowing costs as fixed-income yields decreased amid robust investor demand. Market data indicated a broad-based yield compression across various tenors, signaling cheaper financing costs for the federal government.

The average yield on Nigerian Treasury bills (NTB) fell by 14 basis points to 17.3%, marking the strongest weekly rally recorded in recent sessions. Overall, the NTB average yield closed at 17.33%, reflecting a reduction in short-term financing costs and indicating that investors remain comfortable deploying liquid risk-free government instruments.

The bullish trend was particularly driven by strong demand for Treasury bills, which led to a decline in yields. In contrast, Nigeria's eurobond market saw a slight increase in average yield, edging up by 1 basis point to 6.90%, suggesting weaker offshore sentiment possibly influenced by global risk conditions.

The Central Bank of Nigeria's NTB auction earlier in the week reflected improved sentiment among local institutional investors, reinforcing the downward trend in borrowing costs.