NGX meets FTSE Russell, global investors in London over T+1 concerns
A delegation of the Nigerian Exchange Group (NGX) led by Chairman Umaru Kwairanga has met with FTSE Russell, international institutional investors, custodians, and other capital market stakeholders in London to address concerns over Nigeria’s transition to a T+1 settlement cycle.
The meeting followed FTSE Russell’s decision to pause Nigeria’s reclassification back to Frontier Market status, despite recent reforms aimed at improving accessibility and efficiency. Sources familiar with the discussions described them as “fruitful and frank,” noting that both sides exchanged views on the issues affecting Nigeria’s market status.
The NGX team emphasised that the T+1 framework was developed through industry-wide consultations and has been operating smoothly since its implementation last month. They highlighted that the Securities and Exchange Commission (SEC) approved the transition and reiterated Nigeria’s readiness to address any concerns within the new settlement cycle. Proposals were also presented to further align Nigeria’s market operations with international best practices, with feedback awaited from FTSE Russell and other stakeholders.
Strong participation from major institutional investors and global custodians contributed to the success of the engagement, creating an atmosphere of openness and trust.
FTSE Russell had last month placed Nigeria’s planned reclassification under “further review” to assess how the shortened settlement cycle affects international investors. A definitive update on Nigeria’s potential return to the Frontier Market index is expected by the end of August 2026. Nigeria had originally been upgraded from “Unclassified” to “Frontier Market” during the March 2026 interim review, with implementation scheduled for September.
Meanwhile, S&P Dow Jones Indices (S&P DJI) has placed Nigeria on its 2027 watchlist for possible reclassification as a Frontier Market, citing regulatory reforms aimed at improving transparency, integrity, and accessibility.
S&P DJI said it would monitor developments through 2026 before making a final decision in its 2027 Country Classification Annual Review.
The developments highlight growing international recognition of Nigeria’s capital market reforms, though consistent policy implementation and stronger operational resilience will be critical before any upgrade is confirmed.
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