Nigeria’s dollar bonds and equities rallied after President Bola Tinubu said he’ll end the nation’s $10 billion fuel-subsidy program and announced plans to adopt an uniform exchange rate.

Debt due in 2047 jumped 1.6 cents on the dollar to 66.23 by 4.50 p.m. in London, heading for the biggest advance in a month. Bonds due in 2049 gained 1.7 cents and those maturing in 2051 advanced 1.9 cents.

The NGX 50 Index, which comprises of the nation’s biggest companies, surged 6.7% in Lagos, the most since November 2020.

Source: https://www.bloomberg.com/news/articles/2023-05-30/nigeria-s-dollar-bonds-jump-after-new-president-scraps-fuel-caps#xj4y7vzkg

Things to note:

—Nigeria Eurobond rose after Tinubu took over

—Nigeria Dollarbond rose after Tinubu took over

—Nigeria stock exchange posed the greatest increase in one day after any presidential inauguration since 1999.

This shows the investors have full confidence in Tinubu government.

Fuel subsidy is evil, I wish Tinubu put the subsidy funds into good use so that most Nigerians will see reasons why it should go