Government says return to frontier market classification validates economic reforms and will strengthen investor confidence….
The Federal Government says it is targeting Nigeria’s progression to emerging market status following FTSE Russell’s confirmation of the country’s return to the frontier market classification.
FTSE Russell announced that Nigeria will be upgraded from “unclassified” to “frontier market” status, effective September 21, 2026.
An emerging market classification generally refers to economies transitioning towards more developed, industrialised and globally integrated markets, with growing participation in international investment.
The development comes months after FTSE Russell suspended plans to reclassify Nigeria, citing the need for further assessment of issues surrounding the country’s transition from a T+2 to a T+1 settlement cycle.
Reacting to the latest decision in a statement on Friday, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, described the reclassification as a validation of the government’s economic reform agenda and a significant step in the development of Nigeria’s capital market.
Oyedele said the move would send a positive signal to international investors about the accessibility and improving structure of the Nigerian market.
“The reclassification is an important validation of Nigeria’s reform trajectory and a foundation for the next phase of the country’s capital market development,” Oyedele said.
“It is a meaningful signal to global capital that our market is open, orderly and improving.”
The minister, however, stressed that the return to frontier market status should be viewed as a milestone rather than the final objective.
He said the government’s ambition was to build a deeper, more liquid and competitive capital market capable of achieving emerging market status in the near term.
“Our ambition remains to build a capital market that is deep, liquid and competitive enough to earn Emerging Market status in the near term,” he said.
Oyedele commended the Securities and Exchange Commission, the Central Bank of Nigeria, the Nigerian Exchange Group, the Central Securities Clearing System and other market operators for their contributions to restoring Nigeria’s standing with global index providers.
According to him, the efforts included regulatory reforms, modernisation of market infrastructure and sustained engagement with international investors.
He said the government would continue working with regulators and market institutions to improve market liquidity, expand participation and strengthen investor protection.
The minister added that positioning Nigeria for emerging market status remained a key medium-term objective of the Federal Government.
“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,” he said.
Nigeria was removed from the FTSE Frontier Market universe in September 2023 following challenges around foreign exchange access and the repatriation of capital, which affected the ability of international investors to operate effectively in the Nigerian market.
FTSE Russell announced plans in April 2026 to return Nigeria to the frontier market classification but later suspended the reclassification to allow for further review of the country’s transition from a T+2 to a T+1 settlement cycle.
Following its assessment and engagement with Nigerian market authorities, the index provider confirmed that the implementation of the T+1 settlement system had not resulted in material settlement, operational or funding challenges.
The latest decision clears the way for Nigeria’s return to the FTSE frontier market index and sets the stage for the government’s longer-term push to secure an emerging market classification.
