Nigeria Returns to Frontier Market Framework on Sept 21

FTSE Russell confirmed on August 27 that Nigeria will return to its Frontier Market framework on September 21, ending years of index exile for Nigerian equities. This decision was influenced by steady liquidity in the official NAFEM foreign exchange window and improved profit repatriation pathways for foreign investors.

Following this announcement, the Nigerian Exchange's All-Share Index increased by 81 basis points, closing at 241,298.47 points, with market capitalization rising by N1.29 trillion to N155.83 trillion. Significant buying in Seplat Energy boosted the Oil and Gas sector index by 4.54 percent, while major commercial banks increased by 2.85 percent ahead of third-quarter earnings reports.

Additionally, the Central Bank of Nigeria executed massive open market operations between August 26 and 27, absorbing N4.72 trillion from commercial banks to manage liquidity, defend the naira, and curb consumer price growth.