J.P. Morgan includes Nigeria in new emerging-market bond index with 7.4% weight

This is according to J.P. Morgan’s Global Index Research report dated September 14, 2026 seen by Nairametrics.

The inclusion puts Nigerian naira-denominated government bonds back into a J.P. Morgan emerging-market benchmark more than a decade after the country was removed from the bank’s flagship government bond index in 2015.

However, the development does not represent Nigeria’s readmission into the GBI-EM Global Diversified (GBI-EM GD), as the GBI-EM Edge is a separate benchmark covering frontier markets generally outside the flagship index.

What the data is saying

Nigeria has been assigned a 7.40% weight in the GBI-EM Edge, close to J.P. Morgan’s maximum country weighting of 8%. Nigeria has $17.47 billion worth of eligible government bonds represented across 16 instruments.

• The Nigerian securities included in the benchmark have an average yield to maturity of 17.1%, a duration of 3.38 years and a B- sovereign credit rating.
• Vietnam, Egypt, Morocco, Pakistan, Bangladesh and Kazakhstan each have the maximum 8% weighting, while Sri Lanka has a 7.50% weight.
• Kenya has a 6.91% weighting, followed by Tunisia at 5.32% and Uganda at 4.84%.
• Frontier Africa accounts for 44.5% of the index, compared with 31.5% for Asia.

Overall, the new index tracks approximately $328 billion in local-currency government debt across 425 instruments, 26 markets and 24 currencies.

Backstory

Nigeria was first admitted into J.P. Morgan’s Government Bond Index in October 2012 following the development of an active domestic FGN bond market supported by market makers, a two-way quote system and a broad investor base.

• J.P. Morgan placed Nigeria on its Index Watch list in January 2015 over concerns about FX market illiquidity, difficulties in repatriating capital, a lack of transparency in exchange-rate determination and the absence of a functional two-way FX market.
• Nigeria was eventually removed from the index in September 2015 after failing to resolve the concerns raised by J.P. Morgan.
• In 2022, J.P. Morgan separately removed Nigeriafrom its “overwe ight” emerging-market sovereign debt recommendation, citing macroeconomic risks.
• By April 2025, Nigeria had reopened discussions with J.P. Morgan over a possible return to its Government Bond Index, with Debt Management Office Director-General Patience Oniha pointing to reforms in the FX market.

Those discussions followed reforms aimed at improving transparency, liquidity and functionality in Nigeria’s foreign exchange market.

More Insights

The GBI-EM Edge is designed to capture emerging and frontier economies whose domestic government bond markets are not represented in J.P. Morgan’s mainstream GBI-EM Global Diversified index.

• To qualify, a country must be classified as an emerging market under J.P. Morgan’s sovereign classification framework, while its three-year average gross national income per capita must fall within the lower two-thirds of the relevant global distribution.
• Its onshore local-currency debt must not already be included in the GBI-EM Global Diversified index.
• Individual bonds must generally be fixed-rate or zero-coupon sovereign securities, have more than 2.5 years remaining to maturity at entry and meet a minimum outstanding size equivalent to $250 million.

Nigeria’s inclusion in the benchmark could increase the visibility of FGN bonds among international fixed-income investors. This is particularly significant because the Nigerian securities offer yields substantially above the benchmark average.

• Nigerian securities in the index have an average yield of 17.1%, compared with the benchmark average of 10.39%.
• J.P. Morgan’s data shows that the naira depreciated by 48.7% in 2023 and another 41.9% in 2024 following Nigeria’s foreign-exchange reforms.
• The trend subsequently reversed, with the naira recording an FX return of 6.7% in 2025 and 8.1% in 2026 based on the period covered by the report.

Currency movements are particularly important for foreign investors because returns from naira-denominated government bonds depend on both domestic yields and the exchange rate when proceeds are converted back into dollars.

What you should know

Nigeria’s inclusion comes more than a decade after J.P. Morgan removed the country from its flagship emerging-market government bond index in 2015.

• The latest development represents a return of Nigerian government bonds to a J.P. Morgan benchmark rather than reinstatement into the GBI-EM Global Diversified index.
• J.P. Morgan said the Edge initially comprised 11 markets and 76 bonds worth about $56 billion when measured from its 2017 inception.
• By August 31, 2026, coverage had expanded to 26 markets, 425 instruments and approximately $328 billion of debt.
• The bank said the expansion reflects the growing importance of frontier local-currency debt markets, many of which have improved benchmark bond issuance, auction processes, post-trade infrastructure and accessibility to foreign investors.

For Nigeria, the 7.4% allocation makes the country one of the largest exposures in J.P. Morgan’s new frontier local-currency debt benchmark, potentially putting naira-denominated FGN bonds back on the radar of global investors that track or measure their portfolios against J.P. Morgan indices.
(Nairametrics)