FTSE Russell Delays Nigeria’s Frontier Market Upgrade Over T+1 Settlement Shrift

Global index provider FTSE Russell has placed Nigeria’s planned reclassification back to Frontier Market status under ‘further review’ to assess the impact of the market’s shift to a T+1 settlement cycle.

Nigeria was originally upgraded from ‘Unclassified’ to ‘Frontier’ in March 2026 for implementation in September, but FTSE Russell said it will provide a definitive update by end of August 2026.

FTSE Russell, in a statement, said the reclassification will now be decided after its assessment of the T+1 impact on the market.

“From 01 June 2026, the Nigerian equity market transitioned from a T+2 to T+1 settlement cycle, which could result in Nigeria becoming a de facto prefunded market for international institutional investors.

“A requirement to prefund equity trades is deemed a negative for the ‘Settlement Cycle (DvP)’ criterion, which is one of the five core FTSE Quality of Markets criteria required for attaining Frontier market status within the FTSE Equity Country Classification scheme.

“Consequently, the reclassification of Nigeria is under further review to assess the implications of the transition to a T+1 settlement cycle for international institutional investors. FTSE Russell will provide an update on the status of Nigeria’s potential reclassification to Frontier market status by the end of August 2026,” the organization stated.

Reacting to this, the managing director of Globalview Capital Limited,  Aruna Kebira stated that the market has recently been experiencing some fluctuations, largely influenced by profit-taking behavior and mixed results emerging over time.

He noted, despite reports indicating that the market is facing challenges, it is essential to assess whether the T+1 settlement cycle is genuinely impacting performance, as the latest developments just arrived today.

He pointed out that June has been a tough month for the market, and we had anticipated a positive turnaround today, especially since it is the final day of the month.

He added that the current situation may not show immediate effects, but it could prolong the market’s downward trend if not managed effectively, saying that “our strategy of transitioning from a T +2 to T+1 is under consideration.”

“We are currently implementing a T+1 strategy, and the team’s focus is on delivering results effectively. If we are able to demonstrate success with this approach, we will be well-positioned to move forward with our plans,” he stated.