FTSE Russell To Reclassify Nigeria As Frontier Market

Global index provider FTSE Russell is set to proceed with Nigeria’s reclassification from ‘Unclassified’ to ‘Frontier Market’ status.

According to Nairametrics, sources familiar with the matter has said a formal announcement is expected later this week, clearing the uncertainty that had surrounded the planned return.

The reclassification, initially approved during FTSE Russell’s March 2026 interim review, is scheduled to take effect at the open of trading on September 21, 2026.

The decision comes months after FTSE Russell placed Nigeria’s upgrade ‘under further review’ in June following the Nigerian capital market’s transition from a T+2 to T+1 settlement cycle on June 1, 2026.

The index provider had raised concerns that the shorter settlement period could effectively turn Nigeria into a prefunded market for international institutional investors.

Under FTSE Russell’s ‘Quality of Markets’ criteria, a requirement to prefund equity trades is viewed negatively under the ‘Settlement Cycle (DvP)’ metric, one of five core standards for Frontier Market status.

However, the Securities and Exchange Commission (SCE) subsequently clarified that foreign portfolio investors are not required to prefund their accounts.

SEC stated that transactions settled through the Central Securities Clearing System (CSCS) are settled at 5:00 p.m. on T+1 and remain subject to the standard Delivery versus Payment framework.

Nigeria was originally removed from FTSE Russell’s Frontier Market indices in September 2023 due to persistent difficulties faced by international investors in repatriating capital and executing foreign exchange transactions.

FTSE Russell later acknowledged improvements in Nigeria’s FX market and the clearing of FX backlogs when it approved the country’s return to Frontier Market status earlier this year.

Market analysts expected the reclassification to boost foreign portfolio inflows and improve Nigeria’s visibility among global emerging and frontier market funds.