FGN bonds’ inclusion in J.P. Morgan’s index reaffirms Tinubu’s economic reforms – DMO

Abuja, Sept. 16, 2026

The Debt Management Office (DMO) has described the inclusion of FGN bonds in J. P. Morgan’s new Index for locally issued bonds as an attestation to the positive outcomes of President Bola Tinubu’s economic reforms.

J. P. Morgan, a top international bank that manages the most widely used global Bond Indices, had announced the creation of a new Index for locally issued bonds.

The Director-General of the DMO, Patience Oniha, said that a reform like the stability of the Naira exchange rate made Nigeria an attractive investment destination for foreign investors.

Oniha said that the clearance of the foreign exchange backlog, and overall improvements in the economy, including GDP growth and inflation trends, have also made the Nigerian economy attractive to investors.

“Nigeria met specific criteria for inclusion in the Index, which are liquidity.

“FGN Bonds are actively traded under a Two-Way Quote System, and large volumes of bonds per tenor, well above the minimum of 250 million dollars required for the GBI-EM Edge.

“Nigeria’s weight in the Index, which has 20 countries, is 7.41 per cent. This is, however, the first step towards the inclusion of FGN Bonds in J.P. Morgan’s flagship GBI-EM, expected in 2027,” she said.

She said that the Federal Government remained committed to the economic reform agenda and other initiatives aimed at developing the country.

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the decision reflected growing confidence in Nigeria’s economic management.

According to Oyedele, the development will help lower the cost of financing the government’s development priorities.

“This inclusion is a clear, independent endorsement of the discipline behind Mr President’s reform agenda.

“It reflects the confidence international capital markets now place in Nigeria’s economic management, and it lowers the cost of financing our development priorities,” he said

He said that the Federal Government remained focused on further reforms needed to secure Nigeria’s full reinstatement in J.P. Morgan’s flagship index.

FGN Bonds are fixed-income debt securities issued by the DMO on behalf of the Federal Government.

They allow investors to lend money to the government to finance infrastructure, public projects, and national budget deficits.

​Because they are backed by the full faith and credit of the Federal Government, FGN bonds are considered risk-free debt instruments with zero default risk on principal and interest payouts.

NAN reports that J.P.Morgan announced creation of the Global Bond Index, Emerging Markets (GBI-EM) Edge, which would include Federal Government of Nigeria (FGN) Bonds.

According to J.P. Morgan, Nigeria is one of the only three countries, the others being Kazakstan and Egypt, whose local currency Bonds are being considered for inclusion in the Index in 2027.

NAN reports that selected FGN Bonds were included in the GBI-EM in 2012.

That inclusion had brought multiple benefits to Nigeria as it attracted foreign investors to the domestic FGN securities market and reduced the cost of issuance by about 200 basis points.

It also opened up foreign investments in the equities market and the banking sector whilst also increasing the level of External Reserves.

The country got exited in 2015 due to the issue of foreign exchange liquidity, which the Federal Government has largely addressed.