Bloomberg reported that Deutsche Bank views Nigeria’s naira as undervalued but regards fiscal pressures, including planned borrowing, as a risk, as the government schedules ₦5.75 trillion in fourth-quarter bond offers.
The Debt Management Office’s (DMO) provisional calendar for the fourth quarter of 2026 lists ₦1.75 trillion for Oct. 19 and ₦2 trillion apiece for Nov. 16 and Dec. 14. These are planned offer amounts, not confirmed government proceeds. The office says the calendar may change at short notice.
Bloomberg based its account of Deutsche Bank’s assessment on an Oct. 19 note to clients. It reported that the bank cited the naira’s valuation, returns on local-currency assets and real interest rates it considered favorable. Fiscal pressures, including elevated bond issuance, were the main risk in the bank’s reported view.
The Central Bank of Nigeria (CBN) cut its policy rate to 23% in September after holding it at 26.5% in July. For investors measuring returns in dollars, a stronger naira increases the value of earnings on local assets. A weaker currency reduces those returns, even when the assets pay interest.
The currency view follows a separate change in how an international index provider classifies Nigeria’s stock market. FTSE Russell’s move from Unclassified to Frontier equity-market status took effect Sept. 21. It had removed Nigeria from Frontier status in 2023 after international investors reported delays in transferring capital abroad and completing foreign-exchange trades. FTSE Russell said investors later reported that the currency queues had cleared.
Nigeria’s place in global bond indexes differs from its stock-market classification.
The Independent National Electoral Commission (INEC) schedules presidential and National Assembly elections for Jan. 16, 2027. Before then, the next scheduled bond auction is Nov. 16, followed by the central bank’s policy meeting on Nov. 23-24.
