J.P. Morgan To Delist Nigeria Bonds

JP-MorganJ.P. Morgan has concluded plans to remove Nigeria from its government bond index by the end of October 2015.

The statement is coming after an earlier removal notice on the absence of currency controls, leading to complicated transactions on the bond.

According to J.P. Morgan, some bonds would be delisted by the end of September, while the rest would be removed by the end of October.

Liquid Currency Criteria

The index provider said Nigeria would not be eligible for re-inclusion in the index for a minimum of 12 months. It added that to get back in the reading, Nigeria would have to satisfy the consistent liquid currency criteria.

Meanwhile, the Central Bank of Nigeria, in reaction to the notice, said “it disagrees with the index expulsion”.

The apex bank also said it had started to improve liquidity and transparency in the market, just as foreign exchange traders confirmed that U.S. Dollars rationing to foreign investors has begun.

Nigeria became the second African country after South Africa to be listed in J.P. Morgan’s emerging government bond index, in 2012. Its inclusion adds a 1.8 per cent weight to the index.

The removal will trigger unprecedented sales of Nigerian bonds, resulting in capital outflows and raising borrowing costs for the government.

Nigeria ranked highest African country as Onaolapo claims fourth gold medal

More cheery news from the ongoing London Paralympic games as Team Nigeria athletes has increased their gold medals tally to 4.

Joy Onaolapo won gold in the 52 kilogram powerlifting women’s category thereby increase the country’s total medal haul to 7.

Nigeria remains the highest ranked African country on the overall medal table in seventh position.