April 08, (THEWILL) — Nigeria has regained its Frontier Market classification by FTSE Russell, marking a key milestone in the country’s return to global equity benchmarks and strengthening the visibility of its capital market among international investors.
The reclassification moves Nigeria from “Unclassified” back into the Frontier Market category, following approval by the FTSE Russell Index Governance Board, based on recommendations from its Equity Country Classification Advisory Committee and Policy Advisory Board. The change will take effect in September 2026 and was announced during the organisation’s March 2026 interim review.
The decision reflects measurable improvements in Nigeria’s market infrastructure and accessibility, particularly within the Nigerian Exchange Group ecosystem. Over the past few years, upgrades to trading architecture, settlement processes and disclosure frameworks have improved the efficiency and transparency of the local market, strengthening its appeal to foreign investors.
According to the FTSE Quality of Markets assessment, Nigeria achieved “Pass” ratings across several critical indicators, including regulatory oversight, capital repatriation, brokerage competitiveness, tax environment and settlement efficiency. The market currently operates a T+2 settlement cycle, aligning it more closely with international standards and improving operational reliability for institutional investors.
Despite these gains, the review highlighted areas requiring further progress, including foreign exchange liquidity, transaction cost efficiency, derivatives market availability, and aspects of custody and clearing infrastructure. Continued reforms across regulatory and market institutions will be essential to address these structural gaps.
Commenting on the development, Group Managing Director and Chief Executive Officer of Nigerian Exchange Group, Temi Popoola, said the milestone reflects strong collaboration across Nigeria’s capital market ecosystem and sustained efforts to improve market infrastructure, transparency and investor access.
The restoration of Frontier Market status is expected to improve Nigeria’s visibility among global asset managers and index-tracking funds, potentially unlocking new capital inflows and expanding international participation in the country’s equities market.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
