FTSE Russell says Nigeria will return to frontier market status September 21

FTSE Russell says Nigeria will return to frontier market status September 21

FTSE Russell, a global provider of stock market indices and
data analytics, says Nigeria will be reclassified from “unclassified” to
“frontier market” status, effective September 21, 2026.

 

The global index provider announced the development in a
statement shared with TheCable on Thursday.

 

FTSE Russell said the decision followed an additional
assessment of Nigeria’s equity market after concerns were raised about the
transition from a T+2 to T+1 settlement cycle.

 

The organisation had, in June, placed Nigeria’s
reclassification under more scrutiny over concerns that the shorter settlement
cycle adopted by the country’s capital market could effectively create a de
facto prefunding requirement for international institutional investors.

 

 

However, in the statement, FTSE Russell said engagements
with Nigerian market authorities and feedback from its equity country
classification advisory committee showed that the transition had not created
significant problems.

 

“Following engagement with the Nigerian market authorities
and feedback from the FTSE Equity Country Classification Advisory Committee,
which indicated that no material settlement, operational, or funding issues
have been observed since the implementation of the T+1 settlement cycle,” FTSE
Russell said.

 

“The FTSE Russell Index Governance Board subsequently
confirmed that Nigeria’s reclassification will proceed from the market open on
Monday, September 21.”

 

 

The index provider said the FTSE Frontier Index Series
annual indicative review files for September 2026, which reflect Nigeria’s
reclassification, will be published on September 2.

 

The reclassification will move Nigeria from the
“unclassified” category to “frontier market” status in the FTSE Russell country
classification framework.

 

The development is expected to improve Nigeria’s visibility
among international investors and potentially support greater foreign portfolio
investment in the country’s capital market.

 

FTSE Russell had announced its plan to upgrade Nigeria to a
“frontier market” status in April.

 

The company later suspended the plan, saying it needed more
time to assess whether the T+1, a shorter trade settlement timeline, could
effectively make the market prefunded for international institutional
investors.

 

The global index provider had argued that investors
operating across multiple markets and time zones may face challenges completing
foreign exchange conversions, securing investment approvals and transferring
settlement funds within one business day, potentially forcing them to fund
trades in advance.

 

In response, the Chartered Institute of Stockbrokers (CIS)
said Nigeria’s transition to a T+1 settlement cycle does not require foreign
portfolio investors to prefund their transactions, contrary to the concerns
raised by FTSE Russell.

 

 

Source: FTSE Russell says Nigeria will return to frontier market status September 21



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