FTSE Russell to Reclassify Nigeria as Frontier Market

FTSE Russell is set to proceed with the reclassification of Nigeria from "Unclassified" to "Frontier Market" status, with a formal announcement expected later this week. This decision clears uncertainty regarding Nigeria's return to the Frontier Market category, initially scheduled for September 2026.

FTSE Russell had previously placed Nigeria's reclassification under review due to concerns about the transition to a T+1 settlement cycle, which began on June 1, 2026. The organization expressed worries that this shorter settlement period could make Nigeria a prefunded market for international institutional investors, which is viewed negatively under its "Settlement Cycle (DvP)" criterion.

However, the Nigerian Securities and Exchange Commission clarified that foreign portfolio investors are not required to prefund their accounts when trading. Nigeria was reclassified to Frontier Market status after FTSE Russell's March 2026 interim review, with implementation set for September 21, 2026.

The country had been removed from FTSE Russell’s Frontier Market indices in September 2023 due to challenges faced by international investors.