Nigeria makes FTSE ‘watch list’ for Frontier market status
The FTSE Russell Index Governance Board has approved the addition of Nigeria to the FTSE Watch List for possible reclassification from Unclassified to Frontier market status.
This decision follows the recommendations received from the FTSE Equity Country Classification Advisory Committee and the FTSE Russell Policy Advisory Board for the 2025 review.
The committee and advisory board confirmed from market participants that the previous reported delays in the ability to repatriate capital from Nigeria and associated foreign exchange (FX) queues that resulted in Nigeria being downgraded to Unclassified market status from September 2023, have been cleared since the beginning of 2025.
Read also: FTSE’s Nigeria downgrade hurts stocks
This development confirms how investors acknowledge the works of Olayemi Cardoso, CBN governor and Temi Popoola, CEO, NGX Group.
“Nigeria is added to the Watch List for possible reclassification from Unclassified to Frontier market status. Nigeria was reclassified from Frontier to Unclassified market status from September 2023 due to significant and on-going delays to the ability of international institutional investors to repatriate capital from Nigeria and the execution of foreign exchange (FX) transactions.
“Market participants have reported that the aforementioned FX queues had been cleared and that international institutional investors are no longer experiencing any material delays in their ability to repatriate capital from Nigeria.
“Consequently, as Nigeria meets the five FTSE Quality of Markets criteria required for attaining Frontier market status within the FTSE Equity Country Classification scheme, Nigeria is added to the Watch List for potential promotion from Unclassified to Frontier market status.
“FTSE Russell will provide an update on the Watch List status of Nigeria as part of the FTSE Equity Country Classification March 2026 Interim Review,” the report said.
At the September 2025 advisory committee meetings, FTSE Russell presented an update on the assessment of markets against each of the Quality of Markets criteria.
The Watch List exists to alert the wider market that in-depth engagement is taking place with a market that is being considered for a reclassification change and provides an opportunity for investors to share their experience of operating in the market in order to plan for a potential classification change.
“We would like to congratulate the Nigerian market authorities on this development and look forward to continuing the engagement process,” the advisory committee said.
The FTSE Equity Country Classification Review process incorporates the assessment of global markets against a range of technical criteria and considers the perceptions of institutional investors.
Read also: FTSE Russell equity indices: Nigeria gets a downgrade over FX crisis
To ensure transparency and objectivity, the FTSE Equity Country Classification process is supported by FTSE Russell’s external advisory committees.
The FTSE Equity Country Classification Advisory Committee, which is formed of market practitioners with technical expertise in disciplines such as trading, custody and investment management, and the FTSE Russell Policy Advisory Board, which represents the views of leading global investors, are included in the process.
A formal annual review of country classification within the FTSE global equity indices is conducted every September
using a comprehensive, transparent and consistent methodology.
This annual review incorporates ongoing equity country classification research and classifies markets as Developed, Advanced Emerging, Secondary Emerging or
Frontier within the FTSE global equity indices.
