Nigeria’s Frontier Market Return Looms, Makes FTSE Russell Watch List

Nigeria’s economic and market reforms have gained global momentum, as FTSE Russell announced the country’s inclusion on its Watch List for possible reclassification from Unclassified to Frontier Market status.

The announcement, published in the FTSE Equity Country Classification Annual Review 2025, follows confirmation from market participants that the foreign exchange backlogs and capital repatriation delays which led to Nigeria’s downgrade in 2023 have been cleared since early 2025.

FTSE Russell noted that Nigeria now meets the five Quality of Markets criteria required for Frontier Market classification. As part of its ongoing review process, further assessment is scheduled for March 2026.

Market analysts have attributed the progress to wide-ranging fiscal and monetary policy adjustments, including reforms in the foreign exchange market, rationalisation of fuel subsidies, and measures to improve business ease. These steps and stronger coordination among financial market regulators have enhanced transparency, boosted liquidity, and renewed confidence among local and international investors.

Speaking on the development, group managing director/chief executive officer of Nigerian Exchange Group (NGX Group), Temi Popoola said: “Nigeria’s inclusion on the FTSE Russell Watch List is more than recognition; it is a reaffirmation that policy consistency, transparency, and collaboration work. The recent reforms in the foreign exchange market, fiscal policy, and ease of doing business have collectively helped restore investor confidence and address key structural constraints.

“At NGX Group, we have always viewed such progress as a springboard for deeper capital market evolution. Our focus remains on sustaining liquidity, expanding listings, and leveraging technology and sustainability to enhance the quality of investor participation, ensuring that Nigeria’s market strength becomes both visible and investable on the global stage.”
Observers have also commended the coordinated efforts of the Securities and Exchange Commission (SEC), the Central Bank of Nigeria (CBN), and NGX Group to strengthen the overall market ecosystem and align domestic practices with global standards.

The FTSE Watch List highlights markets under active review for possible reclassification, offering investors transparency and the opportunity for engagement ahead of any potential changes in index status. Nigeria’s inclusion represents a key step toward restoring its position within global equity benchmarks and attracting long-term capital inflows.

NGX Group has reaffirmed its commitment to collaborating with FTSE Russell, market regulators, and other stakeholders to sustain the reform momentum and position Nigeria for a successful reclassification outcome at the March 2026 review.