JPMorgan relisting: FG projects $17.5bn inflow

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has said the relisting of Nigeria on a global bond index managed by JP Morgan is expected to attract about $17.5bn into the country’s debt market and reduce borrowing costs by up to 200 basis points.

Oyedele disclosed this on Monday in Abuja at the signing ceremony for the N728.979bn Series II bond under the N4tn Power Sector Multi-Instrument Issuance Programme.

The PUNCH reports that Nigeria’s naira-denominated government bonds were included in a JP Morgan benchmark, with the country assigned a 7.4 per cent weighting in the newly introduced Government Bond Index-Emerging Markets Edge.

The inclusion, disclosed in JP Morgan’s Global Index Research report dated September 14, 2026, gives Nigerian Federal Government bonds renewed exposure to international fixed-income investors tracking the bank’s frontier-market debt benchmark.

Nigeria’s 7.40 per cent allocation is close to the index’s eight per cent maximum country weighting, with $17.47bn of eligible Nigerian government bonds represented across 16 instruments.

Commenting on this, the minister said the development marked Nigeria’s return to the index after 11 years, describing it as a major boost for the country’s debt market.

“But before I go into it, just to share good news with you. JP Morgan, which manages the world’s most widely tracked emerging market bond indices, has just announced the inclusion of the Federal Government of Nigeria’s bond in its newly created Global Bond Index Emerging Market Edge, which is the entry level for local currency emerging market debt.

“This is expected to attract about $17.5bn into our debt market and bring down the yield by up to 200 basis points. So this is significant. And to those who have invested in this series too, that’s a gold mine. If we are doing another one tomorrow, the rates will be much lower.”

The minister’s announcement came as the Federal Government moved to address outstanding financial obligations in the electricity sector through a bond issuance programme designed to improve liquidity and restore confidence across the power value chain.

The Series II transaction comprises N402bn in cash bonds raised from the capital market and N326.979bn in non-cash bonds allocated to participating electricity generation companies under the Presidential Power Sector Debt Reduction Programme.

The transaction is part of the N4tn Power Sector Multi-Instrument Issuance Programme, which was established to address legitimate legacy obligations in the electricity market.

Speaking at the ceremony, Oyedele said the bond would help tackle accumulated debts that have weakened the sector’s financial position and limited investment.

He said, “This transaction addresses an important challenge in Nigeria’s electricity markets, which is accumulated legacy obligations that have weakened liquidity, constrained investments, and affected confidence across the value chain.”

The minister stressed that settling the debts alone would not solve the problems affecting the power sector, noting that reforms were needed to prevent new obligations from accumulating.

“The Federal Government’s objective is to resolve legitimate legacy obligations in a structured and transparent manner, while implementing the reforms necessary to prevent their recurrence.

“This means the bond program cannot stand alone. It must be accompanied by stronger market discipline, improved revenue assurance, reduction in technical and commercial losses, greater efficiency, and accountability across the electricity ecosystem.”

Oyedele said the government was using the domestic capital market to address a major economic challenge, adding that the success of the programme would depend on whether it produced a financially sustainable electricity market.

“It is also important that we are leveraging Nigeria’s domestic capital markets. This demonstrates how the government can use appropriate market instruments to address significant economic challenges. Ultimately, the success of this program will not be measured by the amount or size of bond that we have issued.

“It will be measured by whether we achieve a financially sustainable electricity market that can attract investments, meet its obligations, and deliver more reliable power to Nigerian households and businesses.”

He commended the participating generation companies, investors, advisers, regulators and other institutions involved in the transaction. “Our task from here on is to ensure disciplined implementation and sustain the broader reforms required to build an electricity market capable of supporting Nigeria’s growth and industrialisation,” he said.

Nigeria’s power sector has faced persistent liquidity challenges arising from unpaid obligations across the electricity value chain. The debts have affected generation companies, distribution companies and other market participants, limiting their ability to invest and maintain operations.

The Federal Government introduced the Power Sector Multi-Instrument Issuance Programme as part of efforts to address the sector’s legacy debts through structured financial instruments.

The latest bond issuance is intended to provide relief to participating generation companies while strengthening the financial foundation of the electricity market. The government’s broader objective is to ensure that debt settlement is accompanied by reforms that improve revenue collection, reduce losses, and make the sector capable of meeting its financial obligations.

The government launched the first phase of the power sector bond programme in December 2025, with the issuance subsequently completed at N501bn in January 2026. The bond marked the beginning of the N4tn Power Sector Multi-Instrument Issuance Programme, designed to raise funds to address outstanding obligations in the electricity market. (Punch)