Nigeria bond yields turn positive as inflation cools, boosting investor appetite

• Bond yields exceed inflation, reversing years of negative real returns
• Heavy demand signals confidence amid Nigeria’s rising borrowing needs

ABUJA, NIGERIA – Nigeria’s January bond auctions point to a sustained shift toward positive real yields, as government borrowing costs rise above inflation and revive investor interest.

Results published by the Debt Management Office after the January 26 auction show marginal rates above 17% on bonds maturing in 2031, 2034 and 2035. This compares with annual inflation of 15.15% in December, according to the National Bureau of Statistics.