By Gloria Ikibah
Nigeria’s capital market is set to return to the global Frontier Market index after FTSE Russell approved its reclassification from “Unclassified” status, nearly three years after the country was removed from the index.
The Federal Ministry of Finance, in a statement issued on Friday, said the reclassification will take effect from the opening of trading on Monday, 21 September 2026. 
Nigeria was excluded from the FTSE Russell Frontier Market universe in September 2023 following persistent challenges around foreign exchange execution and the repatriation of capital, which made it difficult for international investors to operate in the market.
The latest decision, however, follows improvements in foreign exchange liquidity, capital repatriation and overall market accessibility, with the ministry linking the development to the Federal Government’s wider macroeconomic and structural reform programme.
Welcoming the development, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, described the reclassification as an important endorsement of Nigeria’s reform efforts.
“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,” Oyedele said.
He said the development was the result of sustained efforts by both the government and private sector to rebuild investor confidence and improve the functioning of the capital market.
“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,” he said.
Oyedele further stated that the government’s ambition was to move beyond Frontier Market status and position Nigeria for Emerging Market classification.
“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 said.
The minister commended key institutions in the financial sector for their role in securing the reclassification, including the Securities and Exchange Commission, Central Bank of Nigeria, Nigerian Exchange Group and Central Securities Clearing System.
He also acknowledged the contribution of capital market operators and other stakeholders, saying their cooperation had been critical to restoring Nigeria’s position with global index providers.
“Their coordinated efforts spanning regulatory reform, market infrastructure modernisation and investor engagement have been central to restoring Nigeria’s standing among global index providers,” Oyedele said.
The return to the Frontier Market index is expected to improve Nigeria’s visibility among international investors and strengthen efforts to attract foreign capital into the domestic market.
The ministry said the reclassification reflected cumulative improvements in the country’s ability to facilitate foreign exchange transactions, allow investors to repatriate capital and provide greater access to the market.
Looking ahead, the Federal Government said it will continue working with financial regulators and market institutions to deepen liquidity, expand participation and strengthen investor protection.
It said the medium-term objective was to secure Nigeria’s progression from Frontier Market status to Emerging Market status.
“The Ministry will continue to support policies that enhance the depth, transparency and global competitiveness of Nigeria’s capital market as a key pillar of the nation’s economic transformation agenda,” the statement said.
The development comes as the Tinubu administration continues to defend its economic reforms, particularly measures aimed at improving foreign exchange liquidity, strengthening public finances and attracting investment.
For Nigeria’s capital market, the FTSE Russell decision represents a significant step towards restoring the country’s international market standing after years of foreign exchange and capital repatriation difficulties.
