Nigeria’s capital market has received a major boost after FTSE Russell confirmed the country’s return to Frontier Market status from September 21, 2026.
The decision reverses Nigeria’s “Unclassified” status in 2023, which was linked to foreign exchange liquidity challenges, difficulties repatriating investment proceeds and concerns over market accessibility.
FTSE Russell also reviewed Nigeria’s transition from T+2 to T+1 settlement and found no significant settlement, operational or funding challenges following consultations with the Nigerian Exchange Group, Securities and Exchange Commission and other market participants.
Nigeria will now join recognised Frontier Markets including Kenya, Mauritius, Morocco, Romania, Sri Lanka and Bangladesh.
The development is expected to improve Nigeria’s visibility among international investors and could support increased participation, market liquidity and capital inflows.
NGX Group Chief Executive, Temi Popoola, said the focus should now be on converting the renewed international recognition into greater investment and stronger market growth.
Market authorities have been urged to sustain foreign exchange reforms, improve investor protection and corporate governance, strengthen market infrastructure and develop products that can deepen liquidity.
The return to Frontier Market status is also expected to encourage more major private and public companies to list on the Nigerian Exchange, providing businesses with additional avenues for raising long-term capital.
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