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Investors Already Bet Nigeria’s Next Leader Has No Chance of Fixing Fiscal Crisis

  • Chance of much-needed reforms after Feb. 25 vote seen remote
  • Debt service will cost more than the federal government earns

Nigeria’s bond market is already betting that the nation’s next leader — whoever it is — won’t be able to repair the shambles left by the previous administration. 

Africa’s most populous country is in the midst of a fiscal crisis, driven by soaring debt service payments that will soon cost more than the government generates in revenue. The three main candidates vying to replace outgoing President Muhammadu Buhari at an election on Saturday have promised to right the ship, but bond performance suggests investors aren’t buying it.