Nigeria’s economy shrank by 1.5% in 2016, its first annual contraction in 25 years. The president, Muhammadu Buhari (pictured, left), recently spent six weeks seeking medical treatment in London. And the country continues to be roiled by Boko Haram jihadists in the north-east and by unrelated militants’ attacks on oil facilities in the Niger delta.
Yet investors don’t seem to mind: last month Nigeria issued a 15-year, $1bn eurobond—a bond in a currency other than that of the country issuing it—that was eight times oversubscribed. A second issuance is expected, possibly this month. It will probably be met with similar enthusiasm. What makes investing in Nigeria so attractive?