[BOOM] Barclays Will Kick Nigeria Off Its EM Local Bond Index Next February

Barclays has confirmed that it will remove Nigeria’s sovereign debt from its emerging markets local currency government bond benchmark, the bank said on Monday.

“Nigeria will be removed from the flagship Emerging Markets Local Currency Government Index as of February 1, 2016,”

This removal comes two months after JP Morgan yanked Nigeria off its index citing lack of liquidity and capital controls imposed by the CBN. Analysts surveyed by Nairametrics have been expecting Nigeria to get kicked off again following the CBN Governor ‘s reticence towards a devaluation or a loosening of restrictions.

The market probably will not feel the effect of this removal as the bond market is currently being dominated by local investors who are now awash with cash. The CBN has been gradually injecting liquidity into the economy beginning with its decision to reduce the harmonized CRR from 31% to 25% freeing up over N700b into the economy.