BNY Mellon and Standard Bank are opening new doors for global investors, launching a platform that links international markets to Nigeria’s naira-denominated debt.
BNY Mellon And Standard Bank
By introducing Global Depositary Notes, the banks aim to simplify access to one of the world’s most rewarding—yet previously elusive—emerging bond markets.
New Route To Nigerian Debt
As a result, foreign investors can now more easily tap into Nigeria’s attractive fixed-income market.
According to Bloomberg, the move aims to capture investor interest in emerging market returns.
On June 4, Nigeria’s 182-day Treasury bills yielded 18.5%, while its 2033 benchmark bond traded at 19.33%—among the highest in developing economies.
Capital Market Development
Moreover, BNY Mellon’s global head of depository receipts, Chris Kearns, stated that the initiative would unlock Africa’s investment potential and support the long-term development of capital markets across the continent.
Naira Shows Signs Of Stability
At the same time, Nigeria’s currency has begun showing signs of recovery.
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On Wednesday, street traders quoted the naira at ₦1,600 per dollar on the parallel market.
Meanwhile, the official Nigerian Foreign Exchange Market (NFEM) closed Tuesday at ₦1,549.20, a slight dip from Monday’s ₦1,545.26.
Reform Driving Exchange Rate Gains
Since December 2024, when the Central Bank of Nigeria introduced the Electronic Foreign Exchange Matching System (EFEMS), the naira has gradually stabilised.
Governor Olayemi Cardoso attributed this to disciplined reforms, noting that they have significantly closed the gap between official and parallel exchange rates.
A Gateway For Global Investors
In conclusion, this partnership not only expands foreign access to Nigeria’s bond market but also signals growing confidence in the country’s financial reforms and macroeconomic outlook.
