LONDON, Oct 7 (Reuters) - Barclays will consult with its index users on whether Nigeria’s sovereign debt should remain in its emerging market local currency government bond benchmark, the bank said on Wednesday. Barclays listed the “eligibility of Nigeria for inclusion in the EM Local Currency Government Index” among the primary topics to be considered in its annual review process, according to a statement, though it give no additional details. Africa’s largest economy has taken a hammering from the steep drop in oil prices since mid-2014. An exclusion by Barclays could add to its list of financial headaches after rival index provider JP Morgan announced in September it would drop Nigeria from its index, citing a lack of liquidity and currency restrictions. Barclays said the consultation would run through October and results will be published shortly afterwards. Nigeria is one of 19 countries which make up the index and the only one from Africa apart from South Africa. According to Barclays, Nigeria’s bonds had a weighting of 1.2 percent on Oct. 6. (Reporting by Karin Strohecker; Editing by James Dalgleish)
Barclays has confirmed that it is consulting with its index users as to whether Nigeria's sovereign debt should remain in its emerging market local currency government bond benchmark. This follows a move by JPMorgan in September when it said it would ?drop Nigeria from its index, due to a lack of liquidity and currency restrictions. This is yet ?another worrying blow for Nigeria, which is already struggling from a huge drop in oil prices since mid-2014, since oil accounts for 1.2 percent of its government revenues, along with increased tensions from Islamic militants, Boko Haram.