Nigeria is finally getting a favorable nod from investors, pushing stocks higher and bond yields lower as painful reforms restore read more Investors bullish on Nigerian assets as reforms boost confidence – Bloomberg
Investors are increasingly optimistic about Nigerian assets, driven by recent reforms that have bolstered confidence. The sovereign risk spread has reached its lowest level since January 2020, while the NGX All Share index has surged 11% since December 2, outpacing other developing markets. Despite the US-China trade war's impact on emerging markets, Nigeria has remained resilient, attracting foreign capital through improved currency liquidity and naira stability. Experts like Emre Akcakmak from East Capital highlight the Central Bank's role in maintaining monetary stability. The naira's stability and favorable yields on Nigerian eurobonds have further fueled investor interest, with domestic debt auctions seeing significant oversubscription. Analysts from Citigroup remain bullish, attributing Nigeria's appeal to its reform momentum and stable macroeconomic environment.
