FTSE Russell Restores Nigeria’s Frontier Market Status

• Reflecting NGX Market Infrastructure Gains

Nigeria has been restored to Frontier Market status by FTSE Russell, marking a significant milestone in the country’s reintegration into global investment indices and signalling renewed opportunity for international investors.

The reclassification, from “Unclassified” to “Frontier Market,” was approved by the FTSE Russell Index Governance Board following recommendations from its Equity Country Classification Advisory Committee and Policy Advisory Board.

It will take effect from September 2026, with the outcome announced as part of the March 2026 interim re- view and communicated to investors across key global markets.

The decision reflects sustained improvements in Nigeria’s market infrastructure, accessibility, and overall investability, driven in large part by enhancements to the Nigerian Exchange (NGX) platform.

These include strengthened trading systems, improved settlement processes, and increased transparency, all of which have contributed to a more efficient and accessible market environment for domestic and international investors.

According to the FTSE Quality of Markets assessment, Nigeria recorded “Pass” ratings across several core criteria, including regulatory oversight, capital repatriation, brokerage competitiveness, tax framework, and settlement efficiency, with a T+2 settlement cycle in operation. These gains reflect deliberate efforts to align market operations with global standards and improve the investor experience.

While acknowledging this progress, the review also highlighted areas for further development, including foreign exchange market depth, transaction cost efficiency, derivatives market availability, and certain custody and clearing mechanisms. Addressing these gaps will require continued coordination across regulators, market operators, and the broader financial ecosystem.