The Federal Government of Nigeria has secured a major return to global capital markets as J.P. Morgan announced the inclusion of selected Federal Government of Nigeria, FGN Bonds in its newly introduced Government Bond IndexโEmerging Markets Edge, GBI-EM Edge, a benchmark tracking local-currency government debts.
The disclosure was made in a press release issued on Sunday, September 14, 2026, by the Federal Ministry of Finance in Abuja. J.P. Morgan, which manages the world’s most widely tracked emerging market bond indices, said Nigeria’s inclusion reflects improved investor confidence following recent economic reforms.
According to the Ministry, Nigeria qualified on two key measures: liquidity, with FGN Bonds actively traded under a Two-Way Quote System, and issuance size, with outstanding volumes per tenor well above the USD 250 million minimum requirement. The country secured a weighting of 7.40% in the index, among the highest of the 26 markets covered and close to J.P. Morgan’s 8% maximum country cap.
This marks Nigeria’s return to a J.P. Morgan benchmark for the first time in over a decade after its exit from the GBI-EM Global Diversified index in 2015 amid foreign exchange liquidity constraints. The Ministry noted that the current reform agenda, including naira stabilization, clearance of foreign exchange backlogs, and improvements in GDP growth and inflation, directly addressed the issues that led to the exit.
The Federal Government recalled that FGN Bonds were first included in the GBI-EM in 2012, a milestone that drew significant foreign investment, reduced cost of issuance by approximately 200 basis points, and opened the equities market and banking sector to foreign capital while boosting external reserves.
On market impact, the Ministry said the GBI-EM Edge tracks about $328 billion in local-currency government debt globally, with Nigeria’s 7.40% allocation representing roughly $17.47 billion of eligible FGN debt across 16 instruments. It noted that index-tracking funds are expected to adjust their portfolios, channeling additional foreign portfolio inflows into the domestic bond market over time.
The release highlighted two anticipated benefits: yield compression, where increased foreign demand will support bond prices and gradually ease domestic yields, helping moderate government’s debt service cost; and broader market liquidity, where improved liquidity in FGN bonds will have positive knock-on effects across Treasury Bills and other debt instruments.
Commenting on the development, the Honourable Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said: โThis inclusion is a clear, independent endorsement of the discipline behind President Bola Ahmed Tinubuโs reform agenda. It reflects the confidence international capital markets now place in Nigeria’s economic management, and it lowers the cost of financing our development priorities. We remain focused on the work still required to earn full reinstatement in J.P. Morgan’s flagship index.โ The Ministry reaffirmed commitment to sustaining reforms and deepening investor confidence.
