Global index provider FTSE Russell is set to proceed with the reclassification of Nigeria from “Unclassified” to “Frontier Market” status, Nairametrics has learnt.
ll is expected to formally announce the decision later this week, clearing the uncertainty surrounding Nigeria’s planned return to the Frontier Market category
The decision means Nigeria’s reclassification, which had initially been scheduled to take effect in September 2026, is expected to proceed despite concerns raised over the country’s transition to a T+1 settlement cycle.
FTSE Russell had in June placed Nigeria’s reclassification under “further review” after the Nigerian capital market moved from a T+2 to T+1 settlement cycle on June 1, 2026.
The global index provider had expressed concerns that the shorter settlement period could effectively turn Nigeria into a prefunded market for international institutional investors.
FTSE Russell considers a requirement to prefund equity trades a negative under its “Settlement Cycle (DvP)” criterion, one of five core Quality of Markets criteria required for attaining Frontier Market status.
However, Nigeria’s Securities and Exchange Commission subsequently clarified that foreign portfolio investors are not required to prefund their accounts when trading in the Nigerian capital market.
The SEC stated that transactions settled through the Central Securities Clearing System are settled at 5:00 p.m. on T+1 and remain subject to the standard Delivery versus Payment framework.
Nigeria was originally reclassified from “Unclassified” to “Frontier Market” status following FTSE Russell’s March 2026 interim review, with implementation scheduled to take effect from the open of trading on September 21, 2026.
The country had been removed from FTSE Russell’s Frontier Market indices in September 2023 following persistent difficulties experienced by international investors in repatriating capital and executing foreign exchange transactions.
FTSE Russell subsequently acknowledged improvements in Nigeria’s foreign exchange market and the clearing of FX queues when it approved the country’s return to Frontier Market status earlier this year.
Nairametrics understands that the global index provider will provide further details on its decision later this week.
This is a developing story. More details later.
