Nigeria Restored to FTSE Frontier Market Status by 2026

FTSE Russell, a global index provider, announced that Nigeria will be restored to its Frontier Market classification starting September 21, 2026, after being designated "Unclassified" for three years. This decision follows improvements in Nigeria's forex liquidity and exchange rate stability, as well as the country's exit from the Financial Action Task Force grey list in October 2025 and the European Union’s Anti-Money Laundering list in January 2026.

Moody’s Ratings also upgraded Nigeria's outlook from 'stable' to 'positive', affirming its B3 long-term foreign and local currency issuer ratings, citing a stronger external position and robust current account surpluses. The reclassification process faced scrutiny when FTSE Russell reviewed Nigeria's transition to a T+1 settlement cycle, which raised concerns about market conditions for international investors.

However, the Securities and Exchange Commission (SEC) clarified that foreign portfolio investors were not required to prefund their accounts, allowing the reclassification to proceed.