Risk perceptions to delay Nigerian asset recovery

Significance

Nigerian securities have been among the world's worst performing following the decline in oil prices since June 2014, which has -- together with a resurgent dollar -- also driven a dramatic slump in the currency.

Impacts

• Opposition presidential candidate Muhammadu Buhari's February visit to the United Kingdom may help generate financing for a longer campaign.
• Suicide bombings outside of Boko Haram's usual northeast domain could provide the government with reasons to delay the election again.
• High capital adequacy and reserve ration requirements could constrain domestic banks' ability to finance future privatisation schemes.