Nigeria’s return to the FTSE Russell Frontier Market universe could provide fresh momentum for the country’s capital market, the NGX Group has said.

Group Managing Director and Chief Executive Officer of NGX Group, Temi Popoola, said the development could help attract more international investors, improve market liquidity and mobilise long-term capital for Nigerian businesses.

FTSE Russell has confirmed that Nigeria’s reclassification from Unclassified to Frontier Market status will take effect from the market opening on Monday, September 21, 2026.

The decision followed an additional assessment of Nigeria’s transition from a T+2 to T+1 settlement cycle.

The settlement reform had initially raised concerns among market participants over whether it could create a de facto prefunding requirement for international institutional investors.

However, following engagements with Nigerian market authorities and feedback from the FTSE Equity Country Classification Advisory Committee, FTSE Russell said it had not identified any material settlement, operational or funding problems since the introduction of T+1.

Reacting to the development, Popoola said the significance of the decision extended beyond Nigeria’s restoration to an international market classification.

“This is an important moment for Nigeria’s capital market,” he said.

He noted that the greater challenge would be converting Nigeria’s renewed international visibility into stronger participation and increased capital formation.

“We have to turn greater international visibility into broader participation, deeper liquidity and more capital for Nigerian businesses. That is the opportunity before us,” Popoola added.

The FTSE Russell reclassification follows a process that began in October 2025, when Nigeria was placed on the organisation’s Watch List for possible reclassification.

The move followed improvements in foreign exchange liquidity, capital repatriation and market accessibility.

Nigeria subsequently adopted the T+1 settlement cycle on June 1, 2026, triggering further scrutiny from international investors and other market participants.

NGX Group, working with the Securities and Exchange Commission, SEC, engaged FTSE Russell, global custodians and institutional investors to address concerns surrounding the new settlement framework.

In July, an NGX Group delegation also held direct engagements with FTSE Russell, global custodians and institutional investors.

The delegation presented evidence on the operation of T+1 and outlined measures aimed at ensuring that Nigeria’s market infrastructure remained aligned with international standards.

FTSE Russell’s conclusion that no material settlement, operational or funding difficulties had emerged since the transition was viewed as an important validation of the resilience of Nigeria’s market infrastructure.

The Federal Government has also welcomed the reclassification as an important development for Nigeria’s capital-market reform agenda.

Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, described the decision as validation of the country’s reform efforts.

According to the government, the development provides a platform for the next stage of capital-market growth, including the longer-term ambition of positioning Nigeria to progress towards Emerging Market status.

The Federal Ministry of Finance also acknowledged the contributions of NGX Group, SEC, the Central Bank of Nigeria, the Central Securities Clearing System and other stakeholders involved in the process.

Popoola said NGX would continue working towards a market capable of competing more effectively on the global stage while playing a stronger role in Nigeria’s economic development.

“Our ambition is to build a market that is increasingly competitive globally and more relevant to Nigeria’s economic growth,” he said.

He also acknowledged the continued support of the Federal Government, SEC and other stakeholders in advancing the market’s development.

The latest development comes amid wider efforts to increase the role of Nigeria’s capital market in mobilising long-term financing for economic growth.

On August 6, 2026, the NGX Group Board met with President Bola Ahmed Tinubu at the Presidential Villa in Abuja to discuss capital-market developments, ongoing reforms and the market’s potential contribution to Nigeria’s economic transformation agenda.

With the September 21 implementation date approaching, market stakeholders are now expected to focus on converting the renewed international recognition into sustained foreign participation, deeper liquidity and greater access to capital for Nigerian businesses.