J.P. Morgan, a leading global financial services firm, has readmitted Federal Government of Nigeria bonds into its newly created global bond index for emerging markets, a move expected to attract about $17.5 billion into Nigeria's debt market.

The development was disclosed by Nigeria's Finance Minister, Taiwo Oyedele, while delivering remarks at the signing ceremony of the NBET Finance Company Series 2 Bond in Abuja on Monday.

The Minister described it as a significant milestone for the country's capital market, noting that J.P. Morgan's indices are among the most closely tracked by global investors, making Nigeria's return potentially impactful for investment inflows.

"We've been off the list for 11 years," he said.

According to Oyedele, the inclusion is expected to draw approximately $17.5 billion into Nigeria's debt market and could push bond yields down by as much as 200 basis points. "So this is significant," he added.

He noted that the development could also benefit investors who had already subscribed to the Federal Government of Nigeria's Series 2 bond.

"And to those who have invested in FGN Series 2, that's the silver lining," he said.

The Minister further pointed to the potential impact on borrowing costs, remarking, "If it had been allowed tomorrow, the rates would not have gone up."

The inclusion comes as Nigeria continues efforts to deepen its domestic capital market, attract fresh investment and lower the cost of borrowing.

It is also expected to boost the visibility of Nigerian government securities among international fixed-income investors and improve liquidity within the country's debt market.

ID