Introduction of Inflation Linked Bond in Nigeria: Prospects and Challenges

Abstract

Protection against inflation is an essential part of contemporary financial  markets, particularly in high-inflation economies like Nigeria. Nowadays,  inflation linked instruments are becoming popular in the world financial  markets. The objective of this paper is to examine the issues that may arise  if inflation linked bond are introduced in Nigeria. The paper also explore the  different motivations in which for using inflation linked bonds by issuers and  the preference by investors relative to other funding options(for issuers) and  investment portfolio (by investors) in Nigeria.