Nigeria returns to frontier market status after FTSE Russell review

Global index provider FTSE Russell has reclassified Nigeria’s capital market from “Unclassified” to “Frontier Market” status.

The new classification will take effect from the opening of trading on September 21, 2026.

The development was welcomed by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, who described the move as a major endorsement of the Federal Government’s economic reform programme.

Oyedele said the reclassification also sends a strong signal of renewed investor confidence in Nigeria’s capital market and economy.

Nigeria lost its Frontier Market status in September 2023, largely due to persistent difficulties faced by foreign investors in repatriating capital and accessing foreign exchange.

In a statement issued yesterday, Oyedele said the latest reclassification followed sustained improvements in foreign exchange liquidity, capital repatriation and market accessibility.

According to him, the development reflected the cumulative impact of the government’s macroeconomic and structural reform programme.

“The reclassification follows sustained improvements in foreign exchange liquidity, capital repatriation and market accessibility, and reflects the cumulative impact of the Federal Government’s macroeconomic and structural reform programme,” he said.

Oyedele said the decision validated Nigeria’s reform trajectory and provided a strong foundation for the next phase of capital market development.

“It sends a meaningful signal to global investors that our market is open, orderly and steadily improving,” he added.

The minister said the government regarded the development as a milestone rather than the destination, noting that its ambition was to build a deep, liquid and competitive capital market capable of attaining Emerging Market status in the near term.

Oyedele commended the Securities and Exchange Commission, SEC; Central Bank of Nigeria, CBN; Nigerian Exchange Group, NGX Group; Central Securities Clearing System, CSCS; and other capital market operators and stakeholders for their collaboration in achieving the milestone.

He said their coordinated efforts in regulatory reforms, market infrastructure modernisation and investor engagement had contributed to restoring Nigeria’s standing among global index providers.

The minister reaffirmed the Federal Government’s commitment to working with market regulators and institutions to deepen market liquidity, broaden investor participation and strengthen investor protection.

He said the medium-term objective was to secure Nigeria’s progression to Emerging Market status.

“The Ministry will continue to support policies that enhance the depth, transparency and global competitiveness of Nigeria’s capital market as a key pillar of the nation’s economic transformation agenda,” Oyedele said.

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