Nigeria will return to FTSE Russell’s Frontier Market classification on September 21 after the global index provider confirmed that the country’s reclassification will proceed as scheduled.
FTSE Russell said in a market notice published on August 27 that Nigeria would move from Unclassified to Frontier Market status from the opening of trading on September 21.
The confirmation followed an additional review of Nigeria’s equity settlement system after the country moved from a T+2 to a T+1 settlement cycle on June 1.
The review was triggered by concerns among international market participants that the shorter settlement period could create operational or funding difficulties for foreign institutional investors.
However, FTSE Russell said its engagement with Nigerian market authorities and feedback from its Equity Country Classification Advisory Committee showed that no material settlement, operational or funding issues had been observed since the introduction of the T+1 settlement cycle.
The FTSE Russell Index Governance Board subsequently confirmed that Nigeria’s reclassification would proceed on the original timetable.
Nigeria was previously removed from the FTSE Frontier Market classification in 2023 after foreign investors faced difficulties accessing foreign exchange and repatriating investment proceeds. The country was later placed on FTSE Russell’s Watch List as conditions in the foreign exchange market and capital market accessibility improved.
Nigeria’s return could improve the visibility of Nigerian equities among international investors and restore the country to investment mandates and benchmarks linked to FTSE’s Frontier Market indices.
NGX Group said the development was an opportunity to deepen market participation and improve access to capital for Nigerian businesses. Its Group Managing Director and Chief Executive Officer, Temi Popoola, said the focus should now be on turning greater international visibility into deeper liquidity and broader participation.
The next milestone will come on September 2, when FTSE Russell begins publishing the annual indicative review files for its Frontier Index Series ahead of Nigeria’s formal return to the classification on September 21.
