NewStats: 3,261,803 , 8,175,203 topics. Date: Friday, 30 May 2025 at 03:34 PM 431q59

Nigeria is in advanced discussions with JP Morgan to re-enter its Government Bond Index, a move that could signal renewed investor confidence in the country’s foreign exchange (FX) regime following a series of sweeping reforms by the Central Bank of Nigeria (CBN).

This development was disclosed by Patience Oniha, Director-General of the Debt Management Office (DMO), during an investor engagement session tly hosted by Nigeria’s Ministry of Finance and the Central Bank on the sidelines of the IMF/World Bank Spring Meetings in Washington, D.C.

Nigeria was yanked off the JP Morgan index in 2015 following changes to Nigeria’s forex policies which was interpreted as a return to capital control by foreign investors

Why it matters
Being part of JP Morgan’s Government Bond Index is a key marker of investor confidence and provides access to billions of dollars in ive investment flows.

Nigeria’s inclusion would be seen as a global endorsement of recent efforts to liberalize and stabilize the FX market—an area that had previously cost the country its place on the index.

What the DMO DG is saying
Responding to a question on when Nigeria might be reitted into the index, Oniha confirmed that talks with JP Morgan were ongoing and had gained traction on the back of Nigeria’s FX market reforms.

“With all the reforms that have taken place, particularly around FX, we have started engaging JP Morgan again to get back into the index. We think we are eligible now,” she said.

Oniha acknowledged that Nigeria’s previous exclusion stemmed from challenges such as illiquidity and exit restrictions for investors, but noted that the new FX policies have improved transparency and functionality in the market.

Sources familiar with Nigeria’s efforts to re the JP Morgan index told Nairametrics that while discussions are indeed progressing, several key milestones still need to be achieved before re-entry is finalized.

One of the main concerns, they noted, is the depth and liquidity of Nigeria’s local bond market, which must be sufficiently robust and attractive to global investors.
However, the source expressed cautious optimism, suggesting that if current momentum is sustained, Nigeria could secure re-inclusion before the end of the year.
They also suggested that once the announcement is made, Nigeria could attract as much as $2 billion in immediate portfolio inflows, as ive funds tracking the index reposition.

Why Nigeria was removed from the index
Nigeria was first included in the JP Morgan Government Bond Index in October 2012, following the establishment of an active domestic bond market characterized by a two-way quote system, committed market makers, and a broad investor base.

However, in January 2015, JP Morgan placed Nigeria on its Index Watch list. The decision was driven by three core concerns:
1. Illiquidity in the FX market – Investors faced challenges in repatriating capital.
2. Lack of transparency – The mechanism for determining exchange rates was opaque.
3. Absence of a functional two-way FX market – This undermined investor confidence and pricing efficiency.
Nigeria was eventually removed from the index in September 2015 after it failed to address these issues.

In 2022, JP Morgan downgraded Nigeria from its “overweight” recommendation for emerging market sovereign debt. The downgrade was based on Nigeria’s inability to leverage high oil prices to strengthen its macroeconomic position.
The bank also cited growing macroeconomic risks, including deteriorating FX reserves, persistent subsidy payments, and low fiscal buffers.
Earlier in April 2025, JP Morgan advised investors to unwind their long positions in Nigerian Open Market Operation (OMO) bills. The advisory reflected growing concern over falling oil prices and renewed global trade tensions, which could further expose Nigeria’s fiscal vulnerabilities.

What re-entry could mean for Nigeria
A return to the index could boost Nigeria’s credibility in global capital markets and potentially unlock billions in ive investment inflows from asset managers who track such indices.

It would also reflect positively on the Central Bank’s ongoing efforts to restore order in the FX market through unified rates, improved liquidity, and more transparent pricing mechanisms.

Moreover, re-entry could lower Nigeria’s cost of borrowing and ease pressure on the naira by attracting dollar inflows from foreign investors.

https://nairametrics.com/2025/04/24/nigeria-in-advanced-talks-to-re-enter-jp-morgan-bond-index-before-end-of-year/#google_vignette

Good one. We are getting all our macro economic targets right. With time, the gains will trickle down to the micro. God bless president Bola Ahmed Tinubu for the good work.

These guys are looking for more borrowing opportunities again
Instead of looking for means to rejuvenate the real economy, they are looking to stifle local demand just to please portfolio investors who will repatriate their funds in dollars and further tank the naira
These APC guys are incompetent

Agbegbaorogboye:
These guys are looking for more borrowing opportunities again
Instead of looking for means to rejuvenate the real economy, they are looking to stifle local demand just to please portfolio investors who will repatriate their funds in dollars and further tank the naira
These APC guys are incompetent

You think people invest in Bonds if they have no confidence in an economy?

Nonsense always making headlines
Nigeria is a fantastically corrupt country for a reason...

Story story.
They want to tell us another story again o

Look inward. JP Morgan's bond index is not the cause or solution to our problems. Stop chasing shadows.

Enemies of Nigeria will not like this...

They will either call it a scam or propaganda...

Nothing that this government will do that makes sense to the people....

But I thank God say with or without them... Nigeria will move forward...
What we need is a solid foundation and the rest will follow naturally...

God bless Nigeria.....

...

This will attract investors @ least.

Totocracy

Country of jokers. Only a fooI expect anything good from APC as far as governance is concerned

voltron14:


You think people invest in Bonds if they have no confidence in an economy?

these guys dont think logically, they just want to blame d government for everything.

Imagine the same person who brought the topic doesn't even understand the topic.

People only invest in what is sure especially when it involves huge capital

Naira don cast 🙌🤐

voltron14:


You think people invest in Bonds if they have no confidence in an economy?

How much have bonds yielded do far and how does bonds develop the economy other than making more money available for looters?

Nice one 👍

Jp Morgan... Campaigns are starting by next year and the APC is looking for ways to syphon money by all means for the incoming elections. As you rightly said, the country was removed at first because of transparency and ability issues... $2billion is no small money for this government. Be wise

Good

Just to have access to borrowing

SMH.

What a despicable country

voltron14:


You think people invest in Bonds if they have no confidence in an economy?

don't mind the illiterate

Begi begi country

Dennisochampa:
Enemies of Nigeria will not like this...

They will either call it a scam or propaganda...

Nothing that this government will do that makes sense to the people....

But I thank God say with or without them... Nigeria will move forward...
What we need is a solid foundation and the rest will follow naturally...

God bless Nigeria.....

I am not an enemy of the state of Nigeria, but forget all these bond BS, why will you invest in a country where inflation is always running on over 25%, epileptic power supply and where the ATMs are not always working. Nigeria needs to sort out the basics first before talking about bonds or investor confidence.

dahmie2013:
This will attract investors @ least.

How?? is it with inflation running at over 30%

uvie66:
I am not an enemy of the state of Nigeria, but forget all these bond BS, why will you invest in a country where inflation is always running on over 25%, epileptic power supply and where the ATMs are not always working. Nigeria needs to sort out the basics first before talking about bonds or investor confidence.

Agbegbaorogboye:
These guys are looking for more borrowing opportunities again
Instead of looking for means to rejuvenate the real economy, they are looking to stifle local demand just to please portfolio investors who will repatriate their funds in dollars and further tank the naira
These APC guys are incompetent

How can you rejuvenate the real sector without inflow from investors?

BondRiv:
Look inward. JP Morgan's bond index is not the cause or solution to our problems. Stop chasing shadows.

Tell us the solution that is practical.

Samajogs:
Jp Morgan... Campaigns are starting by next year and the APC is looking for ways to syphon money by all means for the incoming elections. As you rightly said, the country was removed at first because of transparency and ability issues... $2billion is no small money for this government. Be wise

You didn't understand the topic. Say the truth.

Codes151:
Just to have access to borrowing

SMH.

What a despicable country

Investment in bonds is borrowing to you?