Nigeria Eurobonds, stocks rally on Tinubu pledges to end fuel subsidy

  • 📰 Reuters
  • ⏱ Reading Time:
  • 31 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 16%
  • Publisher: 97%

United States News News

United States United States Latest News,United States United States Headlines

Nigeria's sovereign dollar-denominated bonds rallied on Tuesday after new President Bola Tinubu said at his swearing-in that a costly fuel subsidy would be removed and the central bank should work towards a unified exchange rate.

Tinubu, whose victory is being disputed in court by his main rivals, inherits record debt, foreign exchange and fuel shortages, a nearly two-decade-high inflation rate, poor power supply and falling oil production due to crude theft and underinvestment.

Getting rid of the fuel subsidy, which cost $9.7 billion in 2022, reforming the foreign exchange market so profits can be repatriated, and raising tax revenues are allHowever, Tinubu's announcement at his swearing-in on Monday lacked details."There is, however, likely to be a supplementary budget to accommodate for higher spending this year," Netherlands-based Yvette Babb, a portfolio manager at William Blair Investment Management, said.

Tinubu enacting his election pledges "will underpin investor confidence", South African research firm ETM Analytics said in a note.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 2. in US

United States United States Latest News, United States United States Headlines