Nigeria is in advanced discussions with JP Morgan to re-enter its Government Bond Index, a move aimed at restoring investor confidence and signalling economic reform progress.
The Director-General of the Debt Management Office (DMO), Patience Oniha, disclosed this during the Nigerian Investors’ Forum held on the sidelines of the ongoing World Bank and International Monetary Fund Spring Meetings in Washington, D.C.
Oniha noted that Nigeria’s re-engagement with JP Morgan follows recent sweeping economic reforms, particularly within the foreign exchange market, which have improved the country’s credit outlook.
“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,” Oniha said.
The JP Morgan Government Bond Index serves as a benchmark for foreign investors tracking emerging markets and could channel billions of dollars in investment flows. Nigeria was originally listed on the index in 2012 but was removed in 2015 following the introduction of currency controls and a deviation from orthodox monetary policy, which restricted the ease of foreign investor transactions.
Since mid-2023, Nigeria has embarked on a series of reforms including exchange rate liberalisation, monetary tightening, and the removal of fuel subsidies. These efforts have begun to yield positive recognition from global credit agencies.
Earlier this month, Fitch Ratings upgraded Nigeria’s Long-Term Issuer Default Rating (IDR) to ‘B’ from ‘B-’, citing enhanced policy coherence, reduced macroeconomic risks, and improved fiscal management. This sovereign upgrade prompted the subsequent upgrading of seven major Nigerian banks and two holding companies, including Access Bank, Zenith Bank, and GTBank.
Fitch stated that Nigeria’s improved credit profile was no longer a constraint on the standalone strength of these financial institutions, reflecting growing international confidence in the country’s economic direction.
