Global index provider FTSE Russell is set to proceed with the reclassification of Nigeria from “Unclassified” to “Frontier Market” status, potentially ending months of uncertainty over the country’s return to the index category.
FTSE Russell is expected to formally announce the decision soon, paving the way for Nigeria’s planned re-entry into the Frontier Market classification. 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 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.
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