Nigeria’s Frontier Market Status Halted by FTSE Russell’s New Settlement Rule Concerns BODY: Lagos, Nigeria – Nigeria’s anticipated upgrade to Frontier Market status has been put on hold as FTSE Russell reviews the country’s transition to a T+1 stock settlement cycle. This decision comes as a setback for Nigeria, which had been working to restore global investor confidence after years of challenges with foreign exchange.
The London — based index provider announced the pause on July 1, 2026, following the Nigerian Stock Exchange’s (NGX) shift from a T+2 to a T+1 settlement period. This change means equity transactions are completed one business day after trading, a move aimed at improving market efficiency but raising concerns among international investors. Nigeria’s Frontier Market status was previously lost in February 2024 due to foreign exchange issues, which hindered investor access and liquidity.
The country’s reclassification to Frontier Market status was expected to take effect in September 2026, following a March 2026 interim review that approved the move.
The new T+1 settlement system has raised concerns about the requirement for foreign investors to pre-fund equity trades, potentially increasing foreign exchange exposure and operational risks. FTSE Russell plans to announce the outcome of its review by the end of August 2026. Despite the pause, Nigerian capital market operators argue that the review overlooks broader reforms that have modernized the country’s market.
David Adonri, vice president of Highcap Securities, suggested that the recent movement is consistent with a consolidation of gains after a strong run.
As Nigeria awaits FTSE Russell’s decision, the nation’s capital market operators and policymakers will need to address the concerns raised by the new stock settlement rule to secure the country’s return to the Frontier Market index and restore investor confidence.
*Additional reporting by ImNews | Sources consulted: 5*
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This original article was produced by the ImNews editorial team
Source: Africa.businessinsider
Source: Ayodeji Adegboyega
