Business Nigerian Govt Bonds Remain Strong Despite JP Morgan Expulsion - DMO

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Nigerian government bonds are still strong despite being delisted by JP Morgan, Director General of The Debt Management Office (DMO) Mr. Abraham Nwankwo has said.

According to him the quality of Nigerian Bonds was not affected by the removal of Nigeria from the JP Morgan Bond Index for Emerging Markets as they remain strong and robust.

He said Nigeria’s removal from the index “does not amount to a downgrade of Nigeria or FGN Bonds since J. P Morgan is not a credit rating agency.

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“It does not have any impact on the quality of the FGN Bonds. They remain risk-free securities that are backed by the full faith and credit of the Federal Government and are charged upon the general assets of Nigeria. It does not imply that the Bonds are no longer liquid.’’

“We want to say that the Nigerian economy has proved to be resilient. The government has taken initiatives to ensure short term stabilisation in terms of the physical position of the various governments in the country and efforts are being made to deal with the long term effects.

“The efforts are being made to make sure that this market in the next three to five years becomes one of the strongest, one of the most sought after, not only in Africa but in the whole world and we will continue in that pursuit.’’

He, however, appealed to the media and all other Nigerians to avoid negative publicity of the Nigerian economy.

“We should not join the bandwagon of speculations and negative sentiment building around the Bonds market and the economy. They should rather emphasise that the Nigerian Bond market existed before it was listed on the J.P Morgan Index,’’ he said.


News Agency of Nigeria
 
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