Nigeria’s strides in economic and reforms-for-300trn-capital-market/” title=”Tinubu Vows Stronger Reform Enforcement to Drive Ambitious N300 Trillion Capital Market Growth”>market reforms have captured international attention, as FTSE Russell recently placed the nation on its Watch List for a potential upgrade from Unclassified to Frontier Market status.
This update, detailed in the FTSE Equity Country Classification Annual Review 2025, comes after market participants confirmed that the foreign exchange bottlenecks and delays in capital repatriation, which triggered Nigeria’s downgrade in 2023, have been resolved since early 2025.
FTSE Russell emphasized that Nigeria now satisfies all five Quality of Markets criteria necessary for Frontier Market designation. The review process will continue, with a further evaluation slated for March 2026.
Experts attribute this advancement to comprehensive fiscal and monetary reforms, including adjustments in the foreign exchange system, the streamlining of fuel subsidies, and initiatives aimed at improving the business environment. These reforms, coupled with enhanced coordination among financial regulators, have increased market transparency, improved liquidity, and restored confidence among both domestic and international investors.
Commenting on this milestone, Temi Popoola, Group Managing Director and CEO of Nigerian Exchange Group (NGX Group), stated: “Being named on the FTSE Russell Watch List is not just an acknowledgment; it validates that consistent policies, openness, and cooperation yield results. The recent reforms in foreign exchange, fiscal policy, and business facilitation have collectively rebuilt investor trust and tackled fundamental structural challenges.”
“At NGX Group, we see this progress as a foundation for further capital market development. Our priorities include maintaining liquidity, increasing market listings, and harnessing technology and sustainability to elevate investor engagement, ensuring Nigeria’s market appeal is both evident and attractive on the global stage.”
Market observers have also praised the joint efforts of the Securities and Exchange Commission (SEC), the Central Bank of Nigeria (CBN), and NGX Group in fortifying the market infrastructure and aligning local practices with international standards.
The FTSE Watch List serves as a transparent mechanism for markets under active consideration for reclassification, providing investors with insight and engagement opportunities before any index status changes. Nigeria’s placement on this list marks a significant move toward regaining its standing in global equity indices and drawing sustained foreign investment.
NGX Group has reiterated its dedication to working closely with FTSE Russell, regulatory bodies, and other stakeholders to maintain reform momentum and secure a favorable reclassification outcome in the March 2026 review.
