Global index provider FTSE Russell is set to proceed with the reclassification of Nigeria from “Unclassified” to “Frontier Market” status, ending months of uncertainty over the country’s return to the index category.
FTSE Russell confirmed, in a market notice published on Thursday, that Nigeria’s reclassification from Unclassified to Frontier Market status will proceed effective from the open of trading on 21 September.
This is a win and affirmation of the reforms of the current Nigerian President Bola Tinubu, who has unified the FX rate, removed fuel subsidies and let the naira trade freely against the dollar.
The development means Nigeria’s reclassification, initially scheduled to take effect in September 2026, is expected to go ahead despite concerns over the country’s transition from a T+2 to a T+1 settlement cycle.
FTSE Russell had in June placed the reclassification under “further review” after Nigeria’s capital market adopted the shorter settlement cycle on June 1, 2026.
The review led to an extensive period of engagement between NGX Group, the Securities and Exchange Commission (SEC), FTSE Russell and international market participants.
In its reaction, NGX Group said its delegation engaged directly with global custodians and institutional investors in July. The discussions provided an opportunity for NGX Group to present evidence on the operation of the T+1 settlement cycle, address questions raised by international investors and custodians, and outline ongoing efforts to ensure that Nigeria’s market infrastructure remains aligned with evolving international best practice.
Following the assessment, FTSE Russell, supported by feedback from the FTSE Equity Country Classification Advisory Committee, confirmed that “no material settlement, operational or funding issues had been observed since the implementation of the T+1 settlement cycle”. On this basis, the FTSE Russell Index Governance Board confirmed that Nigeria’s reclassification will proceed as scheduled from the market open on Monday, 21 September 2026.
The announcement comes amid broader efforts to strengthen the Nigerian capital market and position it as an increasingly important engine of investment and economic growth.
Commenting on the development, Temi Popoola, Group Managing Director/Chief Executive Officer, NGX Group, said, “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. Our ambition is to build a market that is increasingly competitive globally and more relevant to Nigeria’s economic growth. We are encouraged by the continued support of the Federal Government and the commitment of stakeholders across the market as we work towards that ambition.”
The next milestone will be the publication of the FTSE Frontier Index Series annual indicative review files for September 2026, which will reflect Nigeria’s reclassification and are scheduled to begin publication on Wednesday, 2 September 2026. The reclassification will take effect from the market open on Monday, 21 September 2026.
Nigeria’s return to Frontier Market status is expected to enhance the visibility of Nigerian equities within the global investment community and create further opportunities to broaden engagement with international institutional investors and deepen participation in the Nigerian market.
The development follows S&P Dow Jones Indices’ placement of Nigeria on its Watch List for potential reclassification to Frontier Market status as part of its 2027 Country Classification Annual Review, providing a further indication of growing international attention to improvements in Nigeria’s market accessibility.
The country had been removed from FTSE Russell’s Frontier Market indices in September 2023 following persistent challenges faced by international investors in repatriating capital and accessing foreign exchange.
FTSE Russell later acknowledged improvements in Nigeria’s foreign exchange market, including the clearance of outstanding FX transaction queues, before approving the country’s return to Frontier Market status earlier this year.
Follow the MoneyCentral Nigeria channel on WhatsApp: Click here!
