Nigeria has initiated formal discussions with JPMorgan to re-enter the Government Bond Index for Emerging Markets (GBI-EM) after nearly a decade since it was removed. The country was delisted in 2015 due to concerns over foreign exchange transparency and market liquidity.
Patience Oniha, the Director-General of Nigeria’s Debt Management Office (DMO), shared the update on Wednesday during the Nigerian Investor Forum at the International Monetary Fund (IMF) and World Bank Spring Meetings in Washington, D.C. She noted that Nigeria had resumed talks with JPMorgan, supported by recent reforms in the foreign exchange market that have helped restore market confidence and improve conditions.
“Thanks to the reforms, the foreign exchange market has improved, and we are now eligible again. We’ve resumed engagement with JPMorgan to rejoin the index,” Oniha explained.
The DMO reiterated the country’s efforts in a post on X (formerly Twitter) on Thursday, emphasizing that Nigeria now meets the criteria for re-admittance to the JPMorgan GBI-EM index, primarily due to the positive impact of the FX reforms.
Nigeria was initially added to the JPMorgan index in 2012 but was removed in 2015 after being placed on negative watch due to concerns over insufficient liquidity and lack of transparency in foreign exchange pricing. The country’s removal from the index became official on September 8, 2015.
In the years since, Nigeria has introduced significant reforms to address these issues. Most recently, the Central Bank of Nigeria unified multiple exchange rate windows and reduced direct intervention in the FX market, which aims to enhance price discovery and attract more investor participation.
Oniha and Central Bank Governor Olayemi Cardoso also highlighted the recent stabilization of the naira and a resurgence of investor interest in Nigeria’s economy. The country has seen an upgrade from Fitch Ratings, which raised Nigeria’s long-term foreign currency rating from ‘B-’ to ‘B,’ citing improved macroeconomic indicators and investor sentiment.
Rejoining the JPMorgan GBI-EM index is expected to increase Nigeria’s visibility among global fund managers and could attract significant foreign portfolio investments, potentially unlocking billions of dollars. The GBI-EM is a key benchmark for institutional investors, tracking the performance of sovereign bonds in emerging markets.
This push to re-enter the index aligns with Nigeria’s broader goal of consolidating the gains made from its FX market reforms and strengthening its credibility in the international investment community.
