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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 this in a statement on Friday, describing the development as 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 the open of trading on 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 the market open on Monday, Sept. 21.
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 the country must 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 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.
The development comes amid broader efforts to strengthen Nigeria’s capital market and enhance its role in mobilising long term capital for economic growth.
On Aug. 6, the NGX Group Board met with President Bola Tinubu at the Presidential Villa, Abuja.
The board briefed the President on developments and reforms in the capital market and discussed its role in mobilising long term capital.
The engagement also highlighted the need for continued collaboration between government and capital market stakeholders.
The collaboration is expected to create an enabling environment for investment, capital formation and sustainable economic growth.
The next milestone in the reclassification process will be the publication of FTSE Frontier Index Series annual indicative review files for September 2026.
The publication is scheduled to begin on Wednesday, Sept. 2.
The return to Frontier Market status is expected to enhance the visibility of Nigerian equities among global investors.
It is also expected to provide opportunities for greater engagement with international institutional investors.
The development also follows S&P Dow Jones Indices’ placement of Nigeria on its Watch List for potential reclassification to Frontier Market status.
The potential reclassification is under its 2027 Country Classification Annual Review.
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