Nigeria’s fixed income yields surged last week amid widespread sell-offs across market segments, pushing the nation’s total debt stock to ₦91.99 trillion.

Investors sought higher returns in anticipation of further monetary tightening by the Central Bank of Nigeria.

According to data from FMDQ Group Plc for the week ended November 7, 2025, the total debt market size rose by 3.59 per cent week-on-week to ₦91.99 trillion, reflecting a notable increase in borrowing costs for both government and corporate issuers.

This spike in yields marks a reversal from recent weeks when rates had eased and the total market valuation had fallen to about ₦87 trillion.

Analysts linked the shift in market sentiment to heightened sell pressure, as new investors demanded higher yields to offset short-term liquidity constraints, while exiting investors sold off holdings ahead of upcoming auctions.

Others, however, believe the sell-off was largely strategic, an attempt by investors to avoid the Capital Gains Tax set to take effect in January 2026.

The situation was further worsened by geopolitical concerns following United States President Donald Trump’s threat of military action against Nigeria, which fueled panic selling in the equities market and wiped out over ₦2 trillion in market value last week.

In the Treasury Bills market, the 5-Feb-2026 bill recorded the steepest increase, with yields climbing 56 basis points to 16.23 per cent, indicating investors’ preference for higher returns on short-term instruments.

The 7-May-2026 and 5-Nov-2026 bills also posted slight upticks of 6bps and 2bps, respectively.

Yields on benchmark sovereign bonds were largely stable, reflecting moderate activity in the secondary market.

The 17-Apr-2029 bond rose 10bps to 15.87 per cent, while the Mar-2036 and Apr-2049 maturities held steady at 15.67 per cent and 15.57 per cent, respectively.

The modest uptick in shorter-tenor instruments suggests that investors are positioning ahead of forthcoming inflation data and the next round of Federal Government bond reopenings.

Bond futures prices strengthened across maturities, signaling mild bullish sentiment among investors anticipating a moderation in yields in the months ahead.

The 12M/17-Sep-2026 2-Year FGN Bond Future rose to 107.58, while the 10-Year FGN Bond Future (12M/17-Sep-2026) advanced to 132.08.

In the money market, overnight rates ticked higher as system liquidity tightened.

Open Repos held steady at 24.50 per cent, while the Overnight rate edged up 7 basis points to 24.79 per cent, reflecting reduced liquidity in the interbank market.