Nigeria is making significant strides toward rejoining the JP Morgan Government Bond Index-Emerging Markets (GBI-EM), with discussions now at an advanced stage, according to the Director-General of the Debt Management Office (DMO), Patience Oniha.
Speaking at a Nigerian Investors’ Forum on the sidelines of the World Bank/IMF Spring Meetings in Washington, Oniha emphasized that renewed engagement with JP Morgan has been spurred by sweeping economic reforms, particularly in foreign exchange management.
“Following the reforms especially around the FX market we’ve resumed engagement with JP Morgan to be included again in the index. We believe Nigeria now meets the criteria,” Oniha said.
Nigeria was previously delisted from the influential index in 2015 due to capital controls, lack of transparency in currency markets, and unorthodox monetary policies that created barriers for foreign investors. At the time, declining oil revenues and aggressive currency restrictions had led to a confidence crisis, with JP Morgan citing the absence of a functional two-way FX market.
The GBI-EM index is a key benchmark used by global investment funds, and re-entry would signal a powerful endorsement of Nigeria’s economic trajectory, potentially unlocking billions in foreign portfolio inflows.
Recent positive credit actions have supported Nigeria’s case. Fitch Ratings, for instance, recently upgraded the country’s Long-Term Issuer Default Rating from ‘B-’ to ‘B’, citing a renewed commitment to orthodox policy reforms, including tighter monetary policy, the removal of fuel subsidies, and exchange rate liberalization.
Fitch also upgraded the ratings of several major Nigerian banks and their holding companies including Access Bank, Zenith Bank, UBA, and GTCO reflecting improved investor sentiment and a less constrained sovereign credit profile.
“These reforms have boosted credibility and coherence in Nigeria’s economic policy framework, reduced macroeconomic risks, and increased resilience in a challenging global environment,” Fitch said in its latest ratings review.
Nigeria was originally included in the JP Morgan index in 2012, following reforms that eased restrictions on foreign investors. The push to re-enter comes at a critical time, as the government seeks to diversify financing sources and attract more sustainable investment inflows.
As Nigeria works to regain its spot in the index, economic observers will be watching closely to see if the reform momentum can be sustained and translated into long-term investor confidence.
