FG APPLAUDS NIGERIA’S RETURN TO FTSE RUSSELL FRONTIER MARKET STATUS

The Federal Government has welcomed Nigeria’s confirmed return to the FTSE Russell Frontier Market Index, describing the development as a significant boost to the country’s capital market and investment prospects.

FTSE Russell confirmed that Nigeria’s reclassification from “Unclassified” to Frontier Market status will take effect from the opening of trading on September 21, 2026. The decision follows an assessment of improvements in foreign exchange liquidity, capital repatriation and market accessibility.

The development marks Nigeria’s return to the global Frontier Market universe after the country was removed from the classification in 2023 amid concerns over foreign exchange liquidity and the ability of international investors to repatriate funds.

The reclassification had initially faced uncertainty following Nigeria’s transition from a T+2 to a T+1 settlement cycle in June. FTSE Russell subsequently reviewed the new settlement arrangement to determine whether it could create difficulties for international institutional investors.

Following further consultations with the Nigerian Exchange Group, the Securities and Exchange Commission, global custodians and other market participants, FTSE Russell said it found no material settlement, operational or funding problems arising from the new system.

The Federal Government said the decision reflects the progress recorded in Nigeria’s financial market reforms and could strengthen the country’s attractiveness to international investors.

Nigeria’s return to the index is expected to increase the visibility of Nigerian equities among global investors and create opportunities for greater participation by foreign institutional investors.

The development could also support efforts to deepen liquidity in the Nigerian capital market, improve capital formation and provide businesses with greater access to long-term financing.

The Nigerian Exchange Group described the decision as an important milestone but stressed that the country must now convert the increased international visibility into deeper market participation, stronger liquidity and greater capital for Nigerian businesses.

The confirmation also comes as Nigeria continues to pursue reforms aimed at improving the efficiency and competitiveness of its capital market.

With the reclassification scheduled to take effect on September 21, attention will now shift towards ensuring that the benefits of Nigeria’s return to the Frontier Market Index translate into increased investment flows and broader economic opportunities.

The government and capital market stakeholders are expected to continue working together to strengthen market infrastructure, improve investor confidence and position Nigeria as a more competitive destination for both domestic and international investment.