The country’s bonds, which dramatically became bellwethers among emerging-market peers after Bola Tinubu abruptly announced an end to fuel subsidies at his presidential inauguration in late May, are now the worst performers in that class. An hour earlier, eight of Africa’s biggest economy’s bonds had ranked among the 20 worst-performing in the world in London. Nigeria’s Eurobonds with 2033 as their maturity date have depreciated ten times in less than two weeks. Analysts are concerned that Nigeria’s dollar bonds are not likely to find the anchor that set them on a tear in June and also helped restore some measure of investor confidence any moment soon. That, factored into Nigeria’s external reserves balance, leaves a net balance of $16.3 billion, contrary to the long-bandied figure of over $30 billion.

Source: The Guardian August 16, 2023 21:55 UTC