The federal government says it is targeting Nigeria’s progression into the ‘emerging market’ status after the FTSE Russell confirmed the country’s return to the frontier market classification.

An emerging market status means a country is transitioning from a low- or middle-income developing nation into a more modern, industrialized economy with a growing global presence

Nigeria will be upgraded from ‘unclassified’ to ‘frontier market’ status effective September 21, 2026, according to FTSE Russell.

The development comes months after the FTSE halted the country’s reclassification plans.

Welcoming the move in a statement on Friday, Taiwo Oyedele, minister of finance and coordinating minister of the economy, said the reclassification validates the government’s economic reform programme and signals that Nigeria’s capital market is becoming more accessible to international investors.

“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,” Oyedele said.

“It is a meaningful signal to global capital that our market is open, orderly and improving.”

Oyedele said the government views Nigeria’s return to the frontier market classification as a milestone rather than an endpoint.

“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 the Securities and Exchange Commission (SEC), Central Bank of Nigeria (CBN), Nigerian Exchange Group (NGX), Central Securities Clearing System (CSCS) and other market operators for their roles in restoring Nigeria’s standing among global index providers.

He said their efforts included regulatory reforms, modernisation of market infrastructure and engagement with investors.

Oyedele said the government would continue to work with regulators and market institutions to deepen liquidity, broaden participation and strengthen investor protection.

He said the government’s medium-term objective is to position Nigeria for progression 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,” he said.

Nigeria was removed from the FTSE Frontier Market universe in September 2023 following difficulties with foreign exchange access and capital repatriation, which affected international investors’ ability to operate in the market.

After announcing plans to upgrade Nigeria’s status in April, FTSE Russell subsequently suspended the move to allow for more review following concerns about the country’s transition from a T+2 to T+1 settlement cycle.

The index provider later confirmed that its assessment, including engagement with Nigerian market authorities, found no material settlement, operational or funding issues following the implementation of T+1.

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