CIS, ASHON Urge Sustained Reforms After Nigeria’s S&P DJI Watchlist Placement

The Chartered Institute of Stockbrokers (CIS) and the Association of Securities Dealing Houses of Nigeria (ASHON) have called for sustained reforms after Nigeria’s placement on S&P DJI 2027 watchlist.

In a joint statement, the two capital market bodies described the move as a significant endorsement of the far-reaching reforms undertaken in the Nigerian capital market and a signal of growing confidence by the international investment community in the country’s evolving market architecture.

They noted that sustaining regulatory consistency and improving investor experience will be critical to securing full reclassification.

S&P DJI, the world’s leading provider of index-based concepts and benchmarks, including the S&P 500 and Dow Jones Industrial Average, announced in its latest Country Classification Review that Nigeria is being considered for possible inclusion in the 2027 Annual Review Watchlist.

According to the index provider, the Nigerian regulatory environment has modernized to improve transparency, enforcement, and market integrity. While these reforms are intended to support a structurally more accessible market, consistency in policy application and operational resilience are required for reclassification.

S&P DJI said it will closely monitor developments for the remainder of 2026 and may consider Nigeria’s status for reclassification from Standalone to Frontier during next year’s review.

CIS and ASHON noted that the decision reflects sustained efforts by the Securities and Exchange Commission (SEC), Nigerian Exchange Group (NGX), Central Securities Clearing System (CSCS), dealing members, and other stakeholders to strengthen market integrity, deepen liquidity, enhance operational efficiency, and align with global best practices.

The associations said reforms focused on transparency, investor protection, market accessibility, and competitiveness have reinforced investor confidence and positioned Nigeria as one of Africa’s leading investment destinations.

The associations clarified that the introduction of the T+1 settlement cycle did not change Nigeria’s Delivery versus Payment, DvP, framework. Under DvP, securities and payments are exchanged simultaneously at settlement, eliminating principal risk and the need for advance funding.

They explained that the only adjustment was a revision of the settlement cut-off time from 8:00 a.m. to 5:00 p.m. to better accommodate cross-border investors, saying that T+1 places Nigeria among a select group of global markets with highly efficient post-trade systems.

Stockbrokers said Nigeria’s reform process, like those of other emerging and frontier markets, must balance global standards with local economic realities, including FX dynamics and settlement requirements.

They urged continued constructive dialogue between Nigerian authorities and international investors to address transitional challenges through regulatory consistency, operational refinements, and technological improvements.

“The placement of Nigeria on the Watchlist should not be viewed as the destination but as an important milestone on the journey towards securing full Frontier Market status,” the bodies stated.

The associations commended the federal government, SEC, NGX Group, CSCS, and all market operators for driving reforms that led to the milestone.

They also called on stakeholders to sustain momentum to achieve the desired reclassification.

“With sustained reforms, policy consistency, operational excellence, and continued collaboration, Nigeria will successfully attain Frontier Market classification in due course,” they said.

The associations reaffirmed their commitment to initiatives that deepen the market, enhance investor confidence, and position Nigeria as one of Africa’s foremost investment destinations.