FTSE Frontier: NGX targets foreign capital, deeper liquidity

Nigeria’s return to the FTSE Russell Frontier Market Index has opened a fresh window for the country to attract international investors and deepen liquidity in the domestic capital market, the Group Managing Director/Chief Executive Officer of NGX Group, Temi Popoola, has said.

FTSE Russell confirmed on Thursday that Nigeria’s reclassification from Unclassified to Frontier Market status will take effect from the market open on September 21, 2026, following a review of the country’s transition to the T+1 settlement cycle.

The decision is expected to restore Nigeria’s visibility among global portfolio investors after the country was removed from FTSE Russell’s equity country classification framework amid concerns over foreign exchange liquidity and the ability of international investors to repatriate capital.

Popoola said the immediate challenge for the Nigerian market was to convert the renewed international visibility into increased foreign participation, stronger trading liquidity and greater capital mobilisation for businesses.

“This is an important moment for Nigeria’s capital market. But the real significance of returning to Frontier Market status is the opportunity it creates for the next phase of our market’s development,” he said.

“We have to turn greater international visibility into broader participation, deeper liquidity and more capital for Nigerian businesses.”

FTSE Russell’s decision followed an additional assessment of Nigeria’s T+1 settlement framework, which became operational on June 1, 2026.

International investors had raised concerns that the shorter settlement cycle could create a de facto prefunding requirement, potentially restricting foreign participation in Nigerian equities.

However, following engagements with Nigerian market authorities and feedback from the FTSE…