The Federal Government has set its sights on securing Nigeria’s progression to emerging market status after FTSE Russell confirmed the country’s return to the frontier market classification.
FTSE Russell is expected to upgrade Nigeria from ‘unclassified’ to ‘frontier market’ status on September 21, 2026, restoring the country to the global index after its removal in 2023.
Reacting to the development on Friday, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, described the reclassification as an endorsement of the government’s economic reform programme and a fresh opportunity to attract international capital.
“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.”
Oyedele, however, said the frontier market classification should not be regarded as the final destination, stressing that the government’s objective was to build a deeper, more liquid and competitive capital market capable of achieving emerging market status.
“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.
The minister commended the Securities and Exchange Commission, Central Bank of Nigeria, Nigerian Exchange Group, Central Securities Clearing System and other market operators for their roles in restoring Nigeria’s standing with global index providers.
He said the progress reflected regulatory reforms, modernisation of market infrastructure and sustained engagement with international investors, adding that the government would continue working with market regulators to improve liquidity, participation and investor protection.
“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,” Oyedele said.
Nigeria was removed from the FTSE Frontier Market universe in September 2023 after challenges surrounding foreign exchange access and capital repatriation made it difficult for international investors to operate efficiently in the Nigerian market.
Although FTSE Russell announced plans to restore Nigeria’s classification in April 2026, the index provider subsequently suspended the process for further assessment, particularly over concerns surrounding Nigeria’s transition from a T+2 to T+1 settlement cycle.
Following its assessment and engagement with Nigerian market authorities, FTSE Russell said it found no material settlement, operational or funding issues associated with the implementation of the T+1 cycle, paving the way for Nigeria’s return to the frontier market index.
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