Weakness in Nigerian stocks has plagued ETFs beyond NGE. As a result of the promotion of Qatar and the United Arab Emirates to emerging markets status earlier this year, the iShares MSCI Frontier 100 ETF (NYSEArca: FM) has boosted its allocation to Nigeria to almost 12.2%, making the country the ETF’s second-largest country weight behind Kuwait. [Frontier Market ETFs for Global Opportuities]

FM’s increased Nigeria exposure has been a thorn in the ETF’s slide, in part explaining the fund’s nearly 10% tumble over the past three months.

Declines for NGE and FM have coincided with the Nigerian naira record lows against the U.S. dollar. Azous says the government’s 2015 budget requires oil at $73 per barrel. West Texas Intermediate futures currently hover around $75.50 per barrel.

Global X MSCI Nigeria ETF