From Isaac Anumihe, Abuja


ONE week after its hard decision on Nigeria’s debt
instruments rattled the global business community,
the Federal Government yesterday condemned the
planned delisting of its bonds from the JP Morgan
index, saying it does not signify a downturn or
collapse of the nation’s bonds market.
Government however assured holders of its bonds and
potential investors assured that the market remains
strong and attractive to both local and international
investors without JP Morgan influence.
Speaking with newsmen in Abuja on the JP Morgan’s
October delisting notice, the Director General of Debt
Management Office (DMO), Dr. Abraham Nwankwo,
stated that the decision of JP Morgan was based on
the perception of the Foreign Exchange market, which
it claimed was lacking in terms of a fully functional
two-way quota system and had limited transparency.
He assured investors that the phasing out of the
Federal Government bonds from the index does not
amount to a downgrade of Nigeria of government
bonds since JP Morgan is not a credit rating agency.
Also, it does not have any impact on the quality of
government bonds, adding that the bonds remain
risk-free securities that are backed by the full faith
and credit worthiness of the Federal Government of
Nigeria and are charged upon the general assets of
Nigeria.
It further claimed that it does not imply that the
bonds are no longer liquid.
“Federal Government bonds are supported by an
active secondary market, which allows investors to
buy or sell them on any business day through any of
the 13 Primary Dealer Market Makers licenced by the
DMO or on the Nigerian Stock Exchange (NSE) where
the bonds are listed and for which purpose there is a
government stockbroker,” he said.
According to him, Nigeria had already developed a
very attractive bond market way back in 2003, which
attracted the American bank to enlist Nigerian bond
in its bond index.
“Recall that the DMO resuscitated the domestic bond
market in 2003 when it first issued Federal
Government bonds. This landmark achievement was
intended to restructure the government’s domestic
borrowing, which was predominantly short term and to
develop the domestic bond market, which had been
moribund for about 20 years. To achieve these
objectives, the DMO, in collaboration with other
stakeholders, introduced several measures to deepen
the market among which are regular and transparent
Federal Government bond auction; the appointment
of dedicated market makers known as Primary
Dealer Market; a two-way quote based market;
existence of Benchmark Bonds; a Sovereign Yield
Curve extending to 20 years and a diversified
domestic investor base. In essence, a strong and well
established domestic bond market had been
developed through inherent local capacity without
any foreign facilitation,” Nwankwo said

http://sunnewsonline.com/new/fg-decries-jp-morgans-action-says-govt-bonds-remain-strong/

y

www.nairaland.com/attachments/2866973_barackobamamuhammadubuhari1702x336_jpegede1d9eb845a7389b5f1601c8720aa88

Obama be like; "What is this one even saying?".

JP MORGAN OR NO JP MORGAN, NIGERIA WILL THRIVE!!!

WE WILL CONQUER!!!

NO BE SO USA COME DEY ASK US FOR CRUDE OIL NOW?

Cc ishilove

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Nigeria and Nigerians love self deceit and false hope. Why do we shy away from realities?

Our economy is on a downward spin and we are here massaging useless egos

Remains strong and attractive for the gullible investors. I checked FBHN yesterday on the stock exchange and was shocked at the price it was selling.... smh
I know someone will tell me this is about FGN bonds.

Story for the gullible

TonyeBarcanista:
Story for the gullible

they are trying to solve shiit ur role model(gej) started....with time every shiit he dumped would be cleared..
My advice to you, is to start searching for a job in advance

ok

I thought JP Morgan wasn't important and they only wanted to destroy our currency Why FG dey complain now ?

I thought APC folks here said J.P morgan was irrelevant.
Buhari never see anything.

Ok

If joining the Index had benefits, then exiting the Index will no doubt have consequences.