Nigeria Returns to J.P. Morgan Bond Index After Over a Decade

Nigeria is set to return to a major J.P. Morgan emerging-market bond benchmark following the inclusion of selected Federal Government of Nigeria (FGN) bonds in the newly introduced Government Bond Index–Emerging Markets Edge (GBI-EM Edge).
The development reflects improved investor confidence in Nigeria’s domestic debt market, following economic reforms including naira stabilisation, the clearance of foreign exchange backlogs, and improvements in economic growth and inflation.
Nigeria has been assigned a 7.40 per cent weighting in the index, which covers 26 markets. The country qualified based on the liquidity of FGN bonds and the size of outstanding bonds across eligible tenors.
The Federal Ministry of Finance said the inclusion could attract additional foreign portfolio inflows, improve liquidity in the domestic bond market and gradually reduce borrowing costs as demand for FGN bonds increases.
Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, described the development as an independent endorsement of the discipline behind President Bola Ahmed Tinubu’s reform agenda.
He said the inclusion reflects growing confidence in Nigeria’s economic management while noting that further work is required to secure full reinstatement in J.P. Morgan’s flagship index.
Nigeria was previously included in the GBI-EM in 2012 but exited the benchmark in 2015 amid foreign exchange liquidity challenges.