SOLA ONI contends that markets should not be judged solely by how convenient they are for foreign capital
When FTSE Russell announced its proposal to reclassify Nigeria from “Unclassified” to “Frontier Market” status, effective 21 September 2026, many Nigerians welcomed the move as long-overdue recognition of the remarkable progress made in the country’s capital market.
The performance of the Nigerian Exchange Limited (NGX), supported by broader macroeconomic and regulatory reforms, appeared to provide a compelling case for Nigeria’s return to the Frontier Market Index.
However, some market observers remained cautiously optimistic. They argued that the decisions of global index providers are not always driven solely by market fundamentals. Commercial considerations, institutional biases and the operational preferences of international investors often shape such classifications, sometimes at the expense of local market realities.
It is therefore hardly surprising that FTSE Russell has now halted Nigeria’s return to Frontier Market status because of the introduction of mandatory pre-funding for equity transactions under the Central Securities Clearing System’s new T+1 settlement cycle. The decision is disappointing and misguided.
