FTSE Russell reclassifies Nigeria as frontier market

FTSE Russell has confirmed that Nigeria will be reclassified from an unclassified market to frontier market status, effective from the market open on Monday, September 21, 2026. The global index provider announced the decision in a market notice published on Thursday, August 27, marking a significant milestone for the country's capital market after a three-year absence from the benchmark index. The reclassification follows an extensive review process that began in October 2025, when Nigeria was placed on a watch list for potential upgrade due to improvements in foreign exchange liquidity and market accessibility. FTSE Russell had initially announced the return to frontier status in April 2026 with the same September 21 effective date. However, the plan was paused in June after Nigeria transitioned to a shorter, one-day trade settlement cycle, known as T1, on June 1, 2026. Concerns were raised that this change could create a de facto prefunding requirement for international institutional investors, potentially complicating cross-border transactions.