Nigeria Dollar Bonds Experience Extended Decline Following Dangote Raid

Nigeria Dollar Bonds

According to Bloomberg, Nigeria’s dollar bonds maturing in 2025 have witnessed a continuous seven-day decline, marking their longest losing streak since September. This downturn indicates heightened investor scrutiny after the recent clash between Dangote and the Economic and Financial Crimes Commission (EFCC).

Last week, EFCC operatives conducted a raid on the Dangote Group’s headquarters as part of an ongoing investigation into forex allocations in the country. Despite Dangote Group’s assertion of innocence and labelling the raid embarrassing, the Manufacturing Association of Nigeria criticized the operation, citing poor management.

Bloomberg data reveals that the bonds have reached their lowest levels since November 28. The diminishing interest in Nigerian bonds raises concerns, as expressed in a recent Bloomberg report, indicating that last week’s raid has caused panic across the country’s boardrooms.

The extended decline in Nigeria’s dollar bonds suggests a growing unease among investors, with the Dangote-EFCC clash contributing to the apprehension. As the situation unfolds, market participants closely observe the trajectory of these bonds, underscoring the impact of legal investigations on financial markets.

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