Nigeria’s FTSE Russell reclassification has opened a fresh opportunity to deepen the country’s capital market, attract international investors and increase long-term funding for Nigerian businesses.
Temi Popoola, Group Managing Director and Chief Executive Officer of NGX Group, said the development could strengthen Nigeria’s position within global financial markets.
FTSE Russell confirmed that Nigeria would return to its Frontier Market universe from the market opening on September 21, 2026.
The decision followed an additional assessment of Nigeria’s transition from a T+2 to T+1 settlement cycle.
International market participants had previously raised concerns that the shorter settlement period could create a de facto prefunding requirement for foreign institutional investors.
Following consultations with Nigerian market authorities and feedback from the FTSE Equity Country Classification Advisory Committee, FTSE Russell said it had found no material settlement, operational or funding problems since T+1 was introduced.
Reacting to the FTSE Russell reclassification, Popoola said Nigeria’s return to Frontier Market status should be viewed as more than an improvement in international classification.
He said the priority should now be converting increased global visibility into stronger participation and greater capital formation.
“This is an important moment for Nigeria’s capital market,” Popoola said.
He added that the development created an opportunity to advance the next stage of Nigeria’s market development.
“We have to turn greater international visibility into broader participation, deeper liquidity and more capital for Nigerian businesses. That is the opportunity before us,” he said.
Nigeria’s journey back to Frontier Market status began in October 2025, when FTSE Russell placed the country on its Watch List for possible reclassification.
The move followed improvements in areas including foreign exchange liquidity, capital repatriation and market accessibility.
The adoption of T+1 settlement on June 1, 2026, subsequently attracted further attention from international investors and market participants.
NGX Group, working alongside the Securities and Exchange Commission, SEC, engaged FTSE Russell, global custodians and institutional investors to address concerns surrounding the new settlement arrangement.
In July, an NGX Group delegation held discussions with FTSE Russell, global custodians and institutional investors.
The delegation presented evidence on the operation of the T+1 framework and highlighted measures being taken to keep Nigeria’s market infrastructure aligned with international standards.
FTSE Russell’s confirmation that no significant settlement, operational or funding difficulties had emerged since the transition provided further confidence in the resilience of Nigeria’s market infrastructure.
The Federal Government also welcomed the FTSE Russell reclassification as an important milestone in capital-market development.
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, described the decision as validation of Nigeria’s ongoing reform programme.
He said the development would provide a foundation for further capital-market reforms, including efforts to position Nigeria for eventual Emerging Market status.
The Federal Ministry of Finance also acknowledged the contributions of NGX Group, SEC, the Central Bank of Nigeria, the Central Securities Clearing System and other stakeholders.
Popoola said NGX would continue working towards a capital market capable of competing more effectively on the global stage.
“Our ambition is to build a market that is increasingly competitive globally and more relevant to Nigeria’s economic growth,” he said.
He expressed appreciation for continued support from the Federal Government, SEC and other stakeholders.
The latest development comes amid broader efforts to strengthen the role of Nigeria’s capital market in mobilising long-term funding for economic growth.
On August 6, 2026, the NGX Group Board met with President Bola Ahmed Tinubu at the Presidential Villa in Abuja.
The meeting focused on developments and reforms within the capital market and its potential contribution to the administration’s economic transformation agenda.
With Nigeria set to officially return to the Frontier Market universe in September, market stakeholders are expected to focus increasingly on attracting international capital, improving liquidity and building investor confidence.
