Market News

Nigerian equities shrugged off 11-day long losing streak with net capital gains of N1.69 trillion on the back of the upgrade of Nigeria to a higher global investment status.

FTSE Russell, a global market assessor that serves institutional investors worldwide, on Thursday confirmed Nigeria’s reclassification from “Unclassified” to “Frontier Market Status”, effective from beginning of trading on September 21, 2026.  

NigeriaInvestment Guide

Nigerian equities, which had seen its longest bearish sentiment in recent weeks, snapped from the downtrend with immediate rebound as the upgrade filtered into the market.

Market indices showed that net capital gains since the Thursday announcement stood at N1.689 trillion. Average gain for the period stood at 1.1 per cent, nudging the previously flagging year-to-date return to 55.06 per cent. The upgrade rally mitigated the losses in the previous three trading sessions, closing the week with average gain of 0.81 per cent.

The All Share Index (ASI)- the value-based common index that tracks all share prices at the Nigerian Exchange (NGX), closed weekend at 241,298.47 points, after it had fallen to a recent low of 238,682.92 points on Wednesday.

Aggregate market value of all quoted equities rose from its opening value of N154.137 trillion on Thursday to close weekend at N155.826 trillion, representing net capital gains of N1.689 trillion.

Experts have said they expected the upgrade to positively impact the Nigerian capital market, with opportunities for greater access to international capital and deeper domestic participation. 

NigeriaInvestment Guide

“Next week, we expect positive sentiment towards risk assets to persist, following FTSE Russell’s confirmation that Nigeria remains on track for reinclusion in the Frontier Market Index. Nonetheless, elevated fixed-income yields may continue to compete for investors’ capital and temper the pace of gains,” Cordros Capital stated at the weekend.

The confirmation of the upgrade followed extensive reviews of Nigeria’s foreign exchange (forex), liquidity, capital repatriation and overall macroeconomic environment.

The confirmation of the upgrade to “Frontier Market Status” by FTSE Russell Index Governance Board was sequel to favourable reports by FTSE Equity Country Classification Advisory Committee, which affirmed that there were no “no material settlement, operational or funding issues” around the Nigerian market, even with the transition from a three-day, T+2 transaction cycle to a two-day, T+1 settlement cycle. Nigeria had transited from a T+2 to T+1 settlement cycle on June 1, 2026. 

Nigeria had been downgraded to “Unclassified” status in 2023 due to challenges around forex liquidity and capital repatriation as the country grappled with depleted forex reserves, overdue forex obligations, low national revenues, and a spiraling black market in the face of officially pegged but unavailable forex.

President Bola Ahmed Tinubu’s administration took decisive decisions to unify the forex rates under a market-determined framework, remove petrol subsidy and implement string of other reforms that redirect the country’s macroeconomic outlook.     

Group Managing Director, Nigerian Exchange Group (NGX Group), Mr. Temi Popoola described the upgrade as “an important moment for Nigeria’s capital market”.

He said the return to Frontier Market status creates opportunity for the next phase of Nigerian capital market’s development.

“We have to turn greater international visibility into broader participation, deeper liquidity and more capital for Nigerian businesses. Our ambition is to build a market that is increasingly competitive globally and more relevant to Nigeria’s economic growth. We are encouraged by the continued support of the Federal Government and the commitment of stakeholders across the market as we work towards that ambition,” Popoola said. 

According to him, the publication of the FTSE Frontier Index Series annual indicative review files for September 2026, which will reflect Nigeria’s reclassification is a milestone for the market.

He noted that Nigeria’s return to Frontier Market status is expected to enhance the visibility of Nigerian equities within the global investment community and create further opportunities to broaden engagement with international institutional investors and deepen participation in the Nigerian market.

The latest upgrade followed S&P Dow Jones Indices’ placement of Nigeria on its Watch List for potential reclassification to Frontier Market status as part of its 2027 Country Classification Annual Review, providing a further indication of growing international attention to improvements in Nigeria’s market accessibility.

“NGX Group reaffirms its commitment to continued collaboration with the Federal Government, Securities and Exchange Commission (SEC), market operators, investors, global index providers and other stakeholders to strengthen Nigeria’s position within the international financial ecosystem and ensure that the capital market plays an increasingly important role in sustainable economic growth and capital formation,” Popoola said. 

President, Chartered Institute of Stockbrokers (CIS), Dr Fiona Ahimie, said the upgrade should be positive development for foreign portfolio investment, as it restores the country’s visibility and eligibility within the FTSE Russell global index framework.

She explained that the upgrade places Nigerian equities back on the radar of global frontier-market investors and gives index-tracking funds the opportunity to consider Nigerian stocks within their investment universe.

“For the domestic market, the more meaningful benefits could emerge gradually through improved liquidity, broader investor participation and stronger valuations. Increased foreign participation could boost trading activity and potentially reduce the valuation discount attached to Nigerian equities, especially large and liquid stocks that are more accessible to international investors.

“Nevertheless, the reclassification should be regarded as a catalyst, not a cure-all. Sustained foreign inflows will ultimately depend on Nigeria’s ability to maintain adequate forex liquidity, facilitate the efficient repatriation of investment capital, ensure policy consistency, deepen the capital market and achieve greater macroeconomic stability,” Ahimie said. 

Chairman, Association of Securities Dealing Houses of Nigeria (ASHON), Sehinde Adenagbe noted that the upgrade was significant because it enhances the international visibility and credibility of the Nigerian capital market.

He said: “It signals that some of the market-access concerns that previously limited Nigeria’s participation in global investment indices are being addressed. This could encourage international fund managers, institutional investors and research analysts to pay greater attention to Nigerian equities. Over time, increased visibility can improve price discovery, deepen market participation and strengthen the ability of Nigerian companies to attract international capital through the equities market.

“More importantly, the development could strengthen Nigeria’s position within the global capital-market ecosystem. Greater foreign participation would potentially increase market liquidity, broaden the investor base and improve the efficiency of capital allocation. It could also encourage Nigerian listed companies to improve corporate governance, disclosure and investor-relations practices as they compete for international capital”. 

Managing Director, GTI Capital, Mr Kehinde Hassan, said the upgrade sends a positive signal to the global investing public on tradability of the Nigerian market.

He expressed optimism that the country would remain within positive radar of global investors, rating agencies and assessors, citing continuing improvements in the country’s forex liquidity and general macroeconomic outlook.

Hassan added that the upgrade could provide impetus for a market recovery as foreign inflows improve.

Yesterday’s announcement followed a process that began in October 2025, when FTSE Russell placed Nigeria on its Watch List for potential reclassification, following improvements in foreign exchange liquidity, capital repatriation and market accessibility. In April 2026, FTSE Russell subsequently announced Nigeria’s return to Frontier Market status, with an effective date of September 21, 2026. 

FTSE Russell undertook an additional assessment after market participants raised concerns that the new settlement framework of T+1, which started on June 1, 2026, could effectively result in a de facto prefunding requirement for international institutional investors.

The review led to an extensive period of engagement between NGX Group, SEC, FTSE Russell and international market participants.

In July 2026, an NGX Group delegation engaged directly with global custodians and institutional investors. The discussions provided an opportunity for NGX Group to present evidence on the operation of the T+1 settlement cycle, address questions raised by international investors and custodians, and outline ongoing efforts to ensure that Nigeria’s market infrastructure remains aligned with evolving international best practice.

Yesterday’s announcement comes amid broader efforts to strengthen the Nigerian capital market and position it as an increasingly important engine of investment and economic growth. 

On August 6, 2026, the NGX Group Board met with President Bola Ahmed Tinubu, at the Presidential Villa in Abuja to brief him on developments and reforms across the Nigerian capital market and discuss the market’s role in mobilising long-term capital to support Nigeria’s economic transformation agenda.

The engagement underscored the importance of continued collaboration between government and the capital-market ecosystem in creating an enabling environment for investment, capital formation and sustainable economic growth.