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🇧🇬 Bulgaria /Economy & Trade

Nigeria Reclassified to Frontier Market Status by FTSE Russell

From Dnevnik · () Bulgarian

Translated from Bulgarian and summarized by DistantNews. Read the original for the full story.

At a glance

News Named sources Outcome reported
  • Nigeria's capital market has been reclassified to Frontier Market status by FTSE Russell, effective September 21.
  • This upgrade follows sustained improvements in foreign exchange liquidity, capital repatriation, and market accessibility.
  • The reclassification is seen as a validation of Nigeria's reform efforts and a step towards achieving Emerging Market status.

Nigeria's capital market has received a significant boost with its reclassification to Frontier Market status by global index provider FTSE Russell. This upgrade, effective from the opening of trading on Monday, September 21, marks Nigeria's return to the global Frontier Market index after nearly three years of being classified as 'Unclassified'.

The reclassification is an important validation of Nigeria’s reform trajectory and a foundation for the next phase of the country’s capital market development. It is a meaningful signal to global capital that our market is open, orderly and improving.

— Taiwo OyedeleMinister signing the statement, commenting on the significance of the reclassification.

The decision by FTSE Russell is a direct response to sustained improvements in Nigeria's economic landscape, particularly in foreign exchange liquidity, the ease of capital repatriation, and overall market accessibility for international investors. These factors had previously led to Nigeria's exclusion from the index in September 2023. The reclassification is viewed as a strong validation of the Federal Government's ongoing macroeconomic and structural reform programs.

Taiwo Oyedele, the minister who signed the statement, highlighted that this milestone is not an endpoint but a foundation for future development. "Our ambition remains to build a capital market that is deep, liquid and competitive enough to earn Emerging Market status in the near term," he stated. The ministry emphasized that this reclassification sends a meaningful signal to global capital, indicating that Nigeria's market is now open, orderly, and improving.

It reflects years of disciplined work across government and the private sector to restore confidence in our economy. We see this as a milestone, not a destination.

— Taiwo OyedeleMinister commenting on the collaborative effort and future ambitions.

The Federal Ministry of Finance extended commendation to various regulatory bodies and market operators, including the Securities and Exchange Commission, the Central Bank of Nigeria, the Nigerian Exchange Group, and the Central Securities Clearing System. Their collaborative efforts in regulatory reform, market infrastructure modernization, and investor engagement were crucial in restoring Nigeria's standing. The government reaffirms its commitment to further enhancing market liquidity, broadening participation, and strengthening investor protections, with the ultimate goal of positioning Nigeria for progression to Emerging Market status.

Our ambition remains to build a capital market that is deep, liquid and competitive enough to earn Emerging Market status in the near term.

— Taiwo OyedeleMinister outlining the long-term goal for Nigeria's capital market.
About this summary

Originally published by Dnevnik in Bulgarian. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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