v’The dip seems contained and has partly reversed since,’ Head of Africa strategy at Standard Chartered in London, said Samir Gadio, said referring to Eurobond prices.
Foreign investors have largely viewed Nigeria as an attractive destination for their cash this year, bolstered by economic reforms from President Bola Tinubu, including scrapping costly fuel subsidies and allowing the naira currency to devalue.
Nigeria’s equities are up around 65per cent year-to-date in total U.S. dollar return terms, according to Tellimer, making them the best performer in African emerging markets behind Ghana.
The country’s bond spreads have also narrowed enough that it has been eyeing billions in bond sales this year.
‘My sense is that this will not become a major concern for the market,’ said Aberdeen fund manager Kevin Daly, citing expectations that Nigerian officials would discuss the situation with their U.S. counterparts.
And for now, the areas of concern are far from the oil-producing southern part of the country and the commercial capital, Lagos.
‘U.S. military strikes, which still look very unlikely, on the northern or central-north regions of Nigeria are unlikely to have much economic impact because of the lack of commercial activity and the existing disruption in these regions,’ said Tellimer’s Hasnain Malik, adding that Trump’s threats were, for now, ‘a red herring for the investment case’, which should focus on economic policy reforms and good valuations.