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Friday, 5 June 2015

Nigeria debt market in limbo

Trading in Nigeria's debt market will remain slow, with investors unwilling to take positions until new President Muhammadu Buhari unveils his economic policy.
"Everybody seems to be waiting for a clearer direction from the government in terms of composition of the economic team and exchange rates policy direction and concrete steps to restore confidence in the economy," one dealer said.
Nigeria’s central bank had imposed tight controls on the forex market since February in the wake of falling global oil prices and rapid depreciation of the local currency, impacting the offshore investors’ interest in the debt market.
"We hope to see renewed interest in the debt market as soon as the new government kick-starts its economic agenda with possible yields falling in tandem," a senior treasurer at an established commercial bank lender said.
Yields on the benchmark debt maturing in 2024 inched up to 13.88 percent on Friday from 13.83 percent last week.

The 2022 paper was trading with a yield of 13.86 percent, unchanged from last week, while the 2016 note inched up slightly to 13.80 percent against 13.78 percent.

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