The Federal Government is setting its sights beyond Nigeria’s return to the FTSE Russell Frontier Market Index, with Finance Minister Taiwo Oyedele saying the country is now targeting Emerging Market status for its capital market in the near term. The development follows FTSE Russell’s confirmation that Nigeria will officially regain Frontier Market status on September 21, 2026.
Nigeria’s return comes nearly three years after the country was removed from FTSE Russell’s indices in September 2023 following severe foreign exchange illiquidity and difficulties faced by foreign investors trying to repatriate funds. The Federal Ministry of Finance described the latest reclassification as a strong endorsement of the government’s economic reforms and efforts to improve the functioning of the FX market.
Oyedele said the Frontier Market upgrade should be viewed as a milestone rather than the final destination. According to him, the government wants to build a capital market that is deeper, more liquid and competitive enough to qualify for Emerging Market status. He also pledged continued collaboration with regulators to improve liquidity, expand participation and strengthen investor protection.
The return to the Frontier Market Index followed several regulatory changes, including Nigeria’s move from a T+2 to a T+1 trade settlement cycle on June 1, 2026. FTSE Russell subsequently reviewed the transition and confirmed that the shorter settlement period did not create settlement or funding problems for foreign institutional investors, clearing the way for Nigeria’s September reclassification.
The upgrade is expected to improve Nigeria’s visibility among international investors and potentially support renewed foreign portfolio inflows as Nigerian equities regain exposure to global index-tracking and passive investment funds. NGX Group Chief Executive Officer Temi Popoola said the country must now convert that increased international visibility into deeper liquidity, wider participation and more capital for Nigerian businesses.
source: punch
