Nigeria’s sovereign-risk premium surged 16 basis points to 640 basis points on Friday, according to JPMorgan Chase & Co. data, nearing its highest level since November.
CitiGroup Inc. strategists Alexander Rozhetskin and Luis Costa attributed the decline to political instability and a challenging environment for reform in Nigeria.
The country’s sovereign bonds have underperformed over the past two months, particularly in recent weeks, as concerns around cost-of-living protests intensify.
The protests, which began on August 1, demand better governance and relief from soaring living costs.
However, the government’s crackdown on peaceful demonstrators has resulted in fatalities and injuries, while suspected sponsored hoodlums have hijacked the protests in some areas.
https://www.bloomberg.com/news/articles/2024-08-02/nigeria-s-deadly-cost-of-living-protests-spook-bond-investors
