CIS, ASHON Laud Nigeria’s Return to S&P Frontier Watchlist

Nigeria's capital market stakeholders have welcomed S&P Dow Jones Indices' decision to place the country on its 2027 Watchlist, a move that could see it reclassified from a Standalone Market to a Frontier Market. The Chartered Institute of Stockbrokers (CIS) and the Association of Securities Dealing Houses of Nigeria (ASHON) jointly lauded the development, calling it a "significant endorsement of the far-reaching reforms" within the Nigerian capital market.

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significant endorsement of the far-reaching reforms undertaken within the Nigerian capital market

In its review, S&P DJI acknowledged Nigeria's modernized regulatory environment, which has improved transparency, enforcement, and market integrity. However, the index provider stressed the need for "consistency in policy application and operational resilience" before a final reclassification can occur, prompting close monitoring through 2026. CIS and ASHON stated that this decision "underscores the growing confidence of the international investment community in the country’s evolving market architecture."

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underscores the growing confidence of the international investment community in the country’s evolving market architecture

The market operators highlighted that the S&P DJI assessment recognizes "sustained efforts" by regulators, infrastructure providers, and dealing members to strengthen market integrity, enhance efficiency, deepen liquidity, and align with global standards. They believe this positions Nigeria as an attractive destination for domestic and foreign portfolio investment.

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increasing recognition of the sustained efforts of market regulators, infrastructure providers, dealing members, and other key stakeholders to strengthen market integrity, enhance operational efficiency, deepen liquidity, and align Nigeria’s capital market with internationally accepted standards and global best practices

Addressing concerns previously raised by FTSE Russell, which had deferred Nigeria's reclassification due to foreign investor prefunding requirements, CIS and ASHON clarified the market's framework. They explained that the T+1 Settlement Cycle adheres to the Delivery versus Payment (DvP) principle, where securities and payment transfer simultaneously. This mitigates risk and eliminates the need for investors to prefund transactions, ensuring compliance with international best practices.

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affirms the effectiveness of ongoing initiatives aimed at improving market accessibility, transparency, investor protection, and overall competitiveness, thereby positioning Nigeria as an increasingly attractive destination for both domestic and foreign portfolio investment