Experts have recommended bonds as a stable investment option in Nigeria, highlighting their capacity to deliver consistent returns despite the country’s ongoing macroeconomic challenges.
This recommendation was discussed in an episode of “Drinks and Mics” titled “How a Global Recession Will Impact Nigeria,” featuring industry experts such as Ugo Obi-Chukwu, CEO of Nairametrics; Tunji Andrew, CEO of Awabah; Ola Oladele, founder of The Money Wit Club; and Arnold Dublin Green, Chief Investment Officer at Cordros Capital.
As they discussed potential investment options considering Nigeria’s economic difficulties, Ola Oladele remarked, “The stables are not bad. Despite the turbulence, Nigeria is still consistent in bond coupon payments.”
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She highlighted the appeal of high-yield bonds, mentioning the 10-year bond, which offers yields nearing 20%. “Investing N100 million in a 10-year Nigerian bond could yield N20 million in interest over the decade while ensuring that your original N100 million capital is returned,” she explained.
Arnold Dublin Green echoed this view, expressing a preference for high-coupon bonds and favouring short-term treasury bills with a one-year maturity.
When discussing equities, the experts recommended high dividend-paying stocks, mentioning GTCO and palm oil companies like Presco and Okomu Oil for their reliable performance in the stock market.
Nigeria Eurobond rise
Recent data from Nairalytics, sourced from the Debt Management Office (DMO), reveals a significant increase in the yields of Nigerian Eurobonds, which have reached an average of 11.21% as of Wednesday, April 9, 2025.
- This reflects an increase of 163 basis points from 9.584% at the end of March.
- These yield levels are the highest since February 2020, when the COVID-19 pandemic began.
According to Nairametrics’ research team, the rise can be attributed to a recent decision by U.S. President Donald Trump to implement a 10% import tariff on all foreign goods, which exerted additional pressure on the Nigerian Eurobond market, resulting in increased selloffs and prompting the DMO to raise yields.
April FGN savings bonds
In early April 2025, the Debt Management Office (DMO), representing the Federal Government of Nigeria (FGN), announced the opening of subscriptions for the April 2025 issuance of the FGN Savings Bond.
According to the DMO’s official notice, the bond offerings are structured as follows:
- 2-Year FGN Savings Bond maturing on April 16, 2027: 16.046% per annum
- 3-Year FGN Savings Bond maturing on April 16, 2028: 17.046% per annum
Subsequent coupon payments will be made quarterly on July 16, October 16, January 16, and April 16 each year.
According to experts on the Drinks and Mics, the Nigerian government consistently meets its coupon payment obligations for bonds, making them relatively stable even amid turbulent macroeconomic conditions.
