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Nigeria Oil Woes Spike Credit Risk to Highest in 15 Months

  • Country’s decision to delay subsidy cuts to worsen deficits
  • Low output stops Nigeria taking advantage of rising oil prices

Nigeria’s oil industry woes are starting to capture the attention of bond investors.

The cost of insuring the nation’s dollar bonds against default jumped to the highest since October 2020 this week after Africa’s largest crude producer delayed plans to cut expensive gasoline subsidies by 18 months.