FTSE Russell reclassifies Nigeria from “unclassified” to frontier market status on September 21, 2026

By Emma Ujah, Abuja Bureau Chief Global index provider, FTSE Russell, has reclassified Nigeria’s capital market from “Unclassified” to “Frontier Market” status, effective from the opening of trading on September 21, 2026. The development was welcomed by the Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, who described it as a […] The post FTSE Russell restores Nigeria to frontier market status appeared first on Vanguard News.

FTSE Russell, a global provider of stock market indices and data analytics, says Nigeria will be reclassified from “unclassified” to “frontier market” status, effective September 21, 2026.   The global index provider announced the development in a statement shared with TheCable on Thursday.   FTSE Russell said the decision followed an additional assessment of Nigeria’s equity market after concerns were raised about the transition from a T+2 to T+1 settlement cycle.   The organisation had, in June, placed Nigeria’s reclassification under more scrutiny over concerns that the shorter settlement cycle adopted by the country’s capital market could effectively create a de facto prefunding requirement for international institutional investors.     However, in the statement, FTSE Russell said engagements with Nigerian market authorities and feedback from its equity country classification advisory committee showed that the transition had not created significant problems.   “Following engagement with the Nigerian market authorities and feedback from the FTSE Equity Country Classification Advisory Committee, which indicated that no material settlement, operational, or funding issues have been observed since the implementation of the T+1 settlement cycle,” FTSE Russell said.   “The FTSE Russell Index Governance Board subsequently confirmed that Nigeria’s reclassification will proceed from the market open on Monday, September 21.”     The index provider said the FTSE Frontier Index Series annual indicative review files for September 2026, which reflect Nigeria’s reclassification, will be published on September 2.   The reclassification will move Nigeria from the “unclassified” category to “frontier market” status in the FTSE Russell country classification framework.   The development is expected to improve Nigeria’s visibility among international investors and potentially support greater foreign portfolio investment in the country’s capital market.   FTSE Russell had announced its plan to upgrade Nigeria to a “frontier market” status in April.   The company later suspended the plan, saying it needed more time to assess whether the T+1, a shorter trade settlement timeline, could effectively make the market prefunded for international institutional investors.   The global index provider had argued that investors operating across multiple markets and time zones may face challenges completing foreign exchange conversions, securing investment approvals and transferring settlement funds within one business day, potentially forcing them to fund trades in advance.   In response, the Chartered Institute of Stockbrokers (CIS) said Nigeria’s transition to a T+1 settlement cycle does not require foreign portfolio investors to prefund their transactions, contrary to the concerns raised by FTSE Russell.    

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." The post FTSE Russell to reclassify Nigeria into Frontier Market status appeared first on Premium Times Nigeria.

Financial analyst and Professor of Accounting, Godwin Oyedokun, has reacted to plans by global index provider, FTSE Russell, to reclassify Nigeria as a Frontier Market. Oyedokun, in an interview with DAILY POST on Thursday, said Nigeria should not lobby international index providers for reclassification. This comes amid reports that FTSE Russell is set to reclassify […] FTSE Russell reclassification: Expert reveals what Nigeria must do to attract foreign investors