BREAKING: #EndBadGovernance Protests Turn Deadly
As Nigerians take to the streets to protest government policies that have pushed inflation to a nearly three-decade high, the country’s economic woes have intensified.
Nigeria’s sovereign-risk premium has soared to an eight-month high, while its dollar bonds have become one of the poorest-performing emerging-market assets, Bloomberg reports.
The situation is further exacerbated by the fact that 40% of the population lives in extreme poverty. The protests, sparked by the rising cost of living, have already resulted in the tragic loss of at least 13 lives on the first day alone.
Nigeria’s sovereign-risk premium surged 16 basis points to 640 basis points on Friday, according to JPMorgan Chase & Co. data, nearing its highest level since November.
CitiGroup Inc. strategists Alexander Rozhetskin and Luis Costa attributed the decline to political instability and a challenging environment for reform in Nigeria.
The country’s sovereign bonds have underperformed over the past two months, particularly in recent weeks, as concerns around cost-of-living protests intensify.
The protests, which began on August 1, demand better governance and relief from soaring living costs.
However, the government’s crackdown on peaceful demonstrators has resulted in fatalities and injuries, while suspected sponsored hoodlums have hijacked the protests in some areas.
