FTSE Russell Reclassifies Nigeria as Frontier Market

FTSE Russell will reclassify Nigeria from Unclassified back to Frontier Market status effective September 21, 2026. The index provider previously removed the country in September 2023 due to significant difficulties regarding foreign exchange access and the repatriation of funds for international investors.

The decision follows a review process that began in October 2025, concluding that foreign exchange queues have cleared and institutional investors no longer face significant delays. The reclassification was briefly delayed to assess whether Nigeria's transition to a T+1 settlement cycle on June 1, 2026, would create prefunding requirements for international investors. After engagements between the Nigerian Exchange Group, the Securities and Exchange Commission, and global custodians, FTSE Russell determined that no material operational or funding issues existed.

NGX Group CEO Temi Popoola described the move as a milestone to attract deeper global investment and increase liquidity for Nigerian businesses. The City Boy Movement praised the economic reforms of President Bola Ahmed Tinubu, calling the reclassification a vote of confidence in the economy. While Cordros Research analysts project passive inflows between US$840 million and US$1.04 billion, official estimates have not been provided. Additionally, S&P Dow Jones Indices has placed Nigeria on its Watch List for potential reclassification during its 2027 review.