FTSE Russell Defers Nigeria's Frontier Market Status Review

The Chartered Institute of Stockbrokers (CIS) stated that FTSE Russell's decision to postpone Nigeria's reclassification to frontier market status is not a setback for the country. The review process will continue until June 30, 2026, allowing FTSE Russell to further assess the implications of Nigeria's migration to a T+1 securities settlement cycle.

The CIS highlighted that the adoption of the T+1 cycle represents a landmark achievement in Nigeria's capital market reform, aligning it with global standards and improving operational efficiency. They noted that the transition does not require foreign portfolio investors to prefund transactions, maintaining the principle of delivery versus payment.

The CIS expressed confidence that addressing concerns related to the operational challenges of the shorter settlement cycle will be crucial for ensuring that no category of investor is unintentionally excluded from participating in the Nigerian capital market. They also referenced Pakistan's experience with T+1 settlement as evidence that such a system can coexist with frontier market classification.