‘Nigeria’s Return To JPMorgan Bond Index Will Cut Borrowing Costs, Boost Dollar Inflows’

Nigeria's return to a JPMorgan emerging markets bond benchmark after an 11-year absence is expected to reduce government borrowing costs and boost dollar inflows into the domestic debt market. Selected federal government bonds have entered the newly launched Government Bond Index Emerging Markets Edge, with Nigeria holding a 7.40 percent weighting. This weighting determines passive index-tracking capital flows. When Nigeria was last included in a JPMorgan benchmark in 2012, the Federal Ministry of Finance reported that inclusion cut issuance costs by roughly 200 basis points.

Read More