JP Morgan Index Drops Half its Nigerian bonds

Half the Nigerian bonds listed on JP Morgan's emerging markets bond index (GBI-EM) to be removed on Wednesday and the rest next month, the U.S. bank said yesterday.

The decision, which means investment funds tracking the index will sell Nigerian bonds, adds to upward pressure on national borrowing costs from a sharp drop in oil revenues.

JP Morgan said this month it would drop Africa's largest economy from its index, citing a lack of liquidity and currency restrictions.