Nigeria Rejoins J.P. Morgan’s Bond Index After 11 Years

J.P. Morgan has re-included Nigeria in its emerging markets index, assigning a 7.4% weighting to the country after an absence of 11 years.

The new index, known as the Government Bond Index–Emerging Markets Edge (GBI-EM Edge), is set to launch by the end of September and will track approximately $330 billion in local-currency government debt across 26 countries. Nigeria's inclusion is significant, as it is one of the largest markets represented, alongside countries like Egypt, Vietnam, and Morocco.

The index will feature government bonds with a minimum value of $250 million and at least 2.5 years to maturity. Nigeria's return to the index follows its removal in 2015 due to foreign exchange liquidity constraints, which have since been addressed.

The GBI-EM Edge is expected to have an average nominal yield of about 10.4%, significantly higher than J.P. Morgan’s emerging-market local-currency index.

This development could increase foreign investment in Nigeria’s domestic securities market.