FTSE RETURN BOOSTS FOREIGN INTEREST IN NIGERIAN STOCKS

Nigeria’s return to the FTSE Russell Frontier Market indexes has increased foreign and institutional interest in Nigerian equities, with major banking stocks recording stronger trading activity.

The reclassification took effect at the opening of trading on Monday, September 21, 2026, following Nigeria’s return from “Unclassified” status to the Frontier Market category.

Nigeria had been removed from the FTSE Frontier Market indexes in 2023 because of challenges including foreign exchange illiquidity, trapped capital and difficulties faced by foreign investors seeking to repatriate funds. FTSE Russell later reviewed the market after improvements in foreign exchange liquidity, capital repatriation and market infrastructure.

Zenith Bank, Guaranty Trust Holding Company and FirstHoldCo were among the Nigerian equities that attracted initial demand as international investors adjusted their portfolios following the reclassification.

The Nigerian Exchange Group said 30 Nigerian companies are now included in the FTSE Frontier Index Series, increasing the visibility of local companies among international investors.

Market analysts said the development could support additional foreign portfolio inflows and improve liquidity as funds tracking FTSE indexes adjust their holdings. However, analysts also noted that increased foreign participation could make the market more sensitive to global investor sentiment and exchange-rate movements.

The reclassification follows reforms in Nigeria’s foreign exchange market and the adoption of a T+1 settlement cycle, which reduced the time required to complete securities transactions. FTSE Russell confirmed after further assessment that it found no material settlement, operational or funding issues with the new framework.

NGX Group said the focus should now be on converting increased international attention into deeper liquidity, broader participation and greater access to capital for Nigerian businesses.