The Nigerian Exchange Group (NGX) has held high-level talks with FTSE Russell, international institutional investors and global custodians in London as Nigeria intensifies efforts to secure its return to Frontier Market status following concerns over the country’s transition to a T+1 settlement cycle.
The engagement, led by NGX Chairman Umaru Kwairanga, came weeks after FTSE Russell suspended the planned reclassification of Nigeria from “Unclassified” to “Frontier Market,” saying it required additional time to assess the impact of the country’s new T+1 settlement regime on foreign institutional investors.
A senior NGX official familiar with the discussions said the meeting provided an opportunity for Nigerian capital market stakeholders to better understand FTSE Russell’s reservations while presenting ongoing reforms aimed at improving market accessibility, efficiency and investor confidence.
According to the official, discussions were “frank and productive,” with both sides exchanging views on issues affecting Nigeria’s market classification.
The Nigerian delegation thanked FTSE Russell for granting the meeting at short notice and sought detailed clarification on the considerations behind the index provider’s decision to place the reclassification under further review.
A major focus of the discussions was Nigeria’s migration to a T+1 settlement cycle, under which equity trades are settled one business day after execution. The framework, introduced last month, followed extensive consultations involving the Securities and Exchange Commission (SEC), NGX, market infrastructure institutions, custodians and other industry participants.
The delegation emphasised that the transition has operated smoothly since its implementation and was developed through broad industry collaboration. It also reaffirmed the SEC’s support for the new framework and Nigeria’s willingness to address any operational concerns raised by international investors.
According to the official, the team also presented proposals aimed at further aligning Nigeria’s post-trade infrastructure with global best practices under the T+1 settlement regime and is awaiting feedback from FTSE Russell and other market participants.
FTSE Russell had initially announced in March that Nigeria would be restored to Frontier Market status during its September 2026 index review. However, last month it placed the decision under further review, saying more time was needed to evaluate the implications of the shortened settlement cycle before reaching a final decision, now expected by the end of August.
The outcome is being closely watched because Frontier Market classification would improve Nigeria’s visibility among international institutional investors and could unlock fresh portfolio inflows from funds tracking FTSE Russell’s frontier market indices.
Commenting on the London engagement, public finance expert Dr Khalid Yusuf Ahmed described the discussions as a strategic step toward strengthening Nigeria’s standing in global capital markets.
He said sustained engagement with international investors remains essential to building confidence, improving market credibility and attracting long-term investment capable of supporting economic growth, business expansion, innovation and job creation.
The talks come as Nigeria’s capital market continues to gain international recognition. Last week, S&P Dow Jones Indices placed the country on its 2027 Country Classification Watchlist for a potential upgrade to Frontier Market status, citing improvements in regulatory transparency, market integrity and accessibility.
While S&P acknowledged the progress made through recent reforms, it said consistent policy implementation and sustained operational resilience would remain critical before any reclassification is approved. Together, the developments underscore both the progress Nigeria has made in modernising its capital market and the importance of maintaining reform momentum to regain full confidence from global investors.