NGX moves to secure frontier market return after FTSE delay

By Abubakar Yunusa

The Nigerian Exchange Group has intensified efforts to restore Nigeria’s Frontier Market status after holding high-level talks with FTSE Russell, international institutional investors, custodians and other capital market stakeholders in London over concerns surrounding the country’s new T+1 settlement cycle.
The meeting followed FTSE Russell’s decision to suspend Nigeria’s planned reclassification as a Frontier Market despite recent reforms aimed at improving market accessibility and efficiency.
A senior NGX official, who participated in the engagement, said the discussions gave Nigerian market stakeholders an opportunity to understand the reasons behind FTSE Russell’s hesitation while presenting ongoing reforms designed to boost investor confidence.
The official described the discussions as “fruitful and frank”, noting that both parties openly exchanged views on issues affecting Nigeria’s market status.
According to the source, the NGX delegation, led by its Chairman, Umaru Kwairanga, thanked FTSE Russell for granting the meeting at short notice and sought detailed clarification on the factors that influenced the index provider’s latest decision.
A major focus of the meeting was Nigeria’s transition to the T+1 settlement cycle, which took effect last month after extensive consultations involving regulators, market operators, infrastructure providers and other stakeholders.
The delegation stressed that the T+1 framework was jointly developed through industry-wide consultations and has operated smoothly since its implementation.
It also informed stakeholders that the Securities and Exchange Commission had approved the transition and reaffirmed Nigeria’s readiness to address any concerns arising under the new settlement framework.
The team further presented proposals aimed at aligning Nigeria’s capital market operations with global best practices under the T+1 regime and is awaiting feedback from FTSE Russell and other stakeholders.
The source added that the active participation of leading institutional investors and global custodians fostered an atmosphere of openness and trust throughout the engagement.
FTSE Russell had earlier said it was delaying Nigeria’s reclassification to allow a comprehensive assessment of how the country’s shortened T+1 settlement cycle, under which trades are cleared and settled one business day after execution, affects international institutional investors.
The index provider said it would announce a final decision on Nigeria’s potential return to the Frontier Market index by the end of August 2026.