The Nigerian Exchange Group (NGX Group) says FTSE Russell’s confirmation of Nigeria’s reclassification to Frontier Market status is a major milestone for the country’s capital market.
The NGX Group said in a statement on Friday that the development was a significant progress in the growth of the capital market.
FTSE Russell, in a market notice published on Thursday, Aug. 27, confirmed that Nigeria’s reclassification from Unclassified to Frontier Market status would take effect from Sept. 21, 2026.
The decision marks Nigeria’s return to the global Frontier Market universe and follows improvements in foreign exchange liquidity, capital repatriation and market accessibility.
The process began in October 2025, when FTSE Russell placed Nigeria on its Watch List for potential reclassification.
In April 2026, the global index provider announced Nigeria’s return to Frontier Market status, with Sept. 21, 2026, set as the effective date.
However, following Nigeria’s transition from a T+2 to T+1 settlement cycle on June 1, 2026, FTSE Russell conducted an additional assessment.
The assessment followed concerns from market participants that the new settlement framework could create a de facto prefunding requirement for international institutional investors.
The review resulted in extensive engagements among NGX Group, the Securities and Exchange Commission (SEC), FTSE Russell, global custodians and international market participants.
In July, an NGX Group delegation engaged global custodians and institutional investors to explain the T+1 settlement cycle and address concerns.
The delegation also highlighted measures to ensure that Nigeria’s market infrastructure remained aligned with international best practices.
According to FTSE Russell, the assessment was supported by feedback from its FTSE Equity Country Classification Advisory Committee.
It found that “no material settlement, operational or funding issues had been observed since the implementation of the T+1 settlement cycle”.
FTSE Russell consequently confirmed that Nigeria’s reclassification would proceed as scheduled from Monday, Sept. 21.
Mr. Temi Popoola, Group Managing Director and Chief Executive Officer of NGX Group, described the development as an important moment for Nigeria’s capital market.
Popoola, however, said that the country should leverage the renewed international visibility to attract more investors, deepen liquidity and increase capital available to Nigerian businesses.
“This is an important moment for Nigeria’s capital market.
“But the real significance of returning to Frontier Market status is the opportunity it creates for the next phase of our market’s development.
“We have to turn greater international visibility into broader participation, deeper liquidity and more capital for Nigerian businesses,” he said.
He said NGX Group’s ambition was to build a market that was increasingly competitive globally and more relevant to Nigeria’s economic growth.
Popoola also acknowledged the continued support of the Federal Government of Nigeria and stakeholders in advancing the development of the market.
He said NGX would continue to collaborate with the Federal Government, SEC, market operators, investors, global index providers and other stakeholders.
He said the collaboration would help strengthen Nigeria’s position in the international financial ecosystem.
GIK/APA