May 22, (THEWILL) — Nigeria’s planned return to the FTSE Russell Index by September 2026 is expected to attract fresh foreign portfolio investments into the country’s equities market, according to the Group Chief Executive Officer of Griffin Capital Group, Babatunde Obaniyi.
Speaking during a press briefing to announce the launch of Griffin Capital as a fully integrated financial services group, Obaniyi said ongoing reforms in Nigeria’s foreign exchange market and improving macroeconomic conditions are gradually restoring investor confidence after years of uncertainty caused by FX illiquidity and capital repatriation challenges.
He noted that the Nigerian stock market has already experienced a strong rally in 2026, posting gains of over 60 percent year-to-date as of May 20. According to him, the improved market outlook presents opportunities for deeper participation in Nigeria’s debt and equity capital markets.
Obaniyi explained that Nigeria’s previous removal from the FTSE Russell Index stemmed largely from the inability of foreign portfolio investors to access and repatriate foreign exchange when exiting investments. The situation, he said, contributed to capital outflows estimated between $10 billion and $15 billion.
However, he expressed confidence that recent reforms introduced under President Bola Tinubu are beginning to address the structural weaknesses that previously discouraged foreign investors. He pointed to Nigeria’s foreign reserves, currently estimated at about $49 billion, and an import cover of roughly 10 months as indicators of improving economic stability.
Obaniyi added that Nigeria’s reclassification from “Unclassified” to “Frontier Market” status by FTSE Russell signals renewed global confidence in the economy and could trigger another market rally once the country rejoins the index in September 2026.
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.
