Nigeria Targets MSCI, JPMorgan After FTSE Index Win

Following Nigeria's reinstatement to the FTSE index, authorities are now focused on convincing MSCI and JPMorgan to reinstate Nigeria in their global equity and bond benchmarks. Emomotimi Agama, director-general of the Securities Exchange Commission, stated that progress reflects market growth.

MSCI currently classifies Nigeria as a Standalone Market, a status assigned in 2024 due to ongoing foreign-exchange liquidity issues that hindered international investment. JPMorgan removed Nigeria from its Government Bond Index for Emerging Markets in 2015, citing currency controls.

Charlie Robertson, an Emerging Markets strategist, noted that Nigeria's return could attract significant foreign inflows, as seen in previous years. The Central Bank's reforms have improved dollar liquidity, with external reserves reaching $54 billion, the highest in 18 years.

The recent unification of the naira's exchange rate has also restored investor confidence. FTSE's decision to restore Nigeria's frontier market status marks a significant acknowledgment of the country's improved market accessibility.