Nigeria’s bond market in red, naira depreciates as Trump tariffs crater global markets

On Monday morning, local bond and currency markets opened to intense volatility, following a cascade of red across global financial markets.

In what appears to be a coordinated effort to manage rising demand pressure in the FX market, the Central Bank of Nigeria (CBN) sold a hefty $124 million at exchange rates ranging between N1,595 and N1,611 per dollar, before 10am.

This follows a separate $197 million intervention on Friday, previously reported by Naijaonpoint, signaling a more aggressive stance by the apex bank to steady the naira.

Despite these efforts, the naira remained under significant pressure as buyers in the market pushed rates even higher. The sharp spike in demand and thin liquidity levels point to growing uncertainty in the foreign exchange market, likely exacerbated by both local and international developments.

In the sovereign debt space, Nigeria’s Eurobond prices plunged by as much as $5 on Monday, with yields spiking to 12%, indicating a steep rise in the cost of borrowing.

Fixed-income analysts suggest the market rout could complicate Nigeria’s access to international debt markets in the near term, especially as the federal government continues to explore dollar-denominated instruments to finance its fiscal gap.

The catalyst for the latest selloff appears to be fresh fears over protectionist U.S. trade policy.

Global markets were rocked by Donald Trump’s announcement last week of sweeping tariffs, including a proposed 10% across-the-board levy on all imports, and targeted duties on Chinese and Mexican goods.

Fears are rising that the global economy could be thrown into disarray, with emerging markets like Nigeria caught in the crossfire.

The central bank’s dual interventions—nearly $321 million in three trading days—suggest that authorities are not only trying to plug liquidity gaps but also pre-empt market panic.