10 Nov 2015
http://www.thisdaylive.com/articles/barclays-to-cut-nigeria-from-emerging-markets-local-bond-index-feb-2016/225221/

Barclays monday announced that it would remove Nigeria's sovereign debt from its emerging markets local currency government bond benchmark from February 1, 2016.

The announcement came a few weeks after United States investment bank, JP Morgan & Chase, removed the country from its Government Bond Index for Emerging Markets (GBI-EM).

Barclays was quoted by Reuters to have explained: "Nigeria will be removed from the flagship Emerging Markets Local Currency Government Index as of February 1, 2016," adding that the debt would continue to be eligible for its broader Emerging Markets Local Currency Government Universal Index.

The index provider had said it would drop Nigeria from its index and had cited same lack of liquidity and currency restrictions that JP Morgan gave to delist Nigerian bond from its index. In fact, Barclays had last month disclosed that it listed Nigeria’s eligibility for inclusion in the Emerging Market Local Currency Government Index among the primary topics to be considered in its yearly review process this month.

The international bank had in March 2013 admitted 13 FGN Bonds with a value of $13.9 billion on the index. Nigeria and Romania were the two countries whose governments' local currency bonds were added to the Index same month.

Africa's largest economy has taken a hammering from the steep drop in oil prices since mid-2014. Barclays also said that Russia and Argentina would become eligible for its Emerging Markets Government Inflation-LinkedI Bond (EMGILB) Index as of February 1, 2016.
When contacted on the development last night, the Director, Corporate Communications of the Central Bank of Nigeria (CBN), Mallam Ibrahim Mu'azu, told THISDAY that the move by Barclays was unfortunate, saying there was no reason for such a decision.

According to him, all the reasons that JP Morgan gave for the delisting of the country earlier had since been resolved, adding that Barclays ought not to have taken such decision.

"There is no reason for their action other than they want to follow what JP Morgan did. If you look at the issues why JP Morgan took its decision, they have all been resolved. The federal government now has a cabinet in place and the developments in the last three months show that the country is on the right track," he added.

He also noted that recent positive ratings assigned to the country by Fitch and S&P ratings were all indications that the nation was on the right path.

The federal government had in response to JP Morgan stated that Nigeria and the interest of Nigerians were paramount, and that they would continue to take economic decisions that would impact positively on the lives of all citizens.

"The market for FGN Bonds remains strong and active due primarily to the strength and diversity of the domestic investor base," it had maintained.

Afrinvest West Africa Limited at the weekend disclosed that the Nigerian bond market had been very liquid in the past few weeks, which has made investors to remain bullish in the fixed income securities market.

The strong liquidity in the market was largely influenced by the decision of the CBN to suspend its regular mop-up of liquidity from the system, mostly through its open market operations (OMO) instrument in the past few weeks. This is evident in the Nigerian Interbank Offered Rates (NIBOR), especially the overnight tenor, which has fallen significantly. The yield on a 90-day naira-denominated treasury bill has fallen from 14.9 per cent in August to 9.3 per cent recently. Having been essentially flat for at least five years, the naira yield curve now has a positive slope.

These, together with a six per cent reduction in commercial banks’ cash reserve requirement from 31 per cent to 25 per cent by the monetary policy committee in September, according to analysts, have more than offset the reduction in liquidity resulting from the implementation of the Treasury Single Account

Good.

Sometimes it's better to react with no reaction.

The zoological Republic has fall

How can you watch god of War and hotel Rwanda and not be scared of civil wars?
Nigeria already has too many issues.

it is finished daura dulllard come see wetin u cause for Nigerians under six months

Investors and economic indicators don't even trust any member of buhari's team.
There is no body with the influence and reputation of Okonjo iweala to atleast paper the cracks, assure them and keep the investments flowing.

Yanks101:
Investors and economic indicators don't even trust any member of buhari's team.
There is no body with the influence and reputation of Okonjo iweala to atleast paper the cracks, assure them and keep the investments flowing.

They have even forgot that they will need to prepeare a budget for 2016.

This is what you get when you vote an illiterate sectional bigot as your President in the 21st century

WombRaiders:

[size=28pt]No talk of budget for 2016. This is change indeed![/size]

Despite the fact that the Buhari regime has refused to implement the duly passed 2015 budget which he inherited from the last administration nor has he deemed it fit to send a supplementary budget if as we are made to believe that he (Buhari) does not see the feasibility of the last budget, we are still left in the dark on this APC administration's policy direction.

If that is not scary alone, there is the disturbing fact that we are yet to even hear of any budgetary planning by this administration.

Under the last administration, the 2015 budget was submitted to the National Assembly for ratification as early as November 2014!
http://www.thisdaylive.com/articles/fg-submits-new-mtef-proposes-n4-661tn-budget-in-2015/194598/

Already there are concerns from certain members of the Senate over this current administrations totally lack of prepeardness towards prepearing and submitting a budget for 2016 http://www.thisdaylive.com/articles/2016-budget-senate-frets-over-fg-s-unpreparedness-to-submit-mtef/218413

How long will we suffer because of the toatal incompetence of the current APC government?

How did we end up with such a total mor0n as President in the 21st century?