The Group Managing Director and Chief Executive Officer of Nigerian Exchange Group, Temi Popoola, has said Nigeria’s return to FTSE Russell’s Frontier Market universe will create fresh opportunities to deepen the country’s capital market.

Popoola said the reclassification would help broaden international participation, improve market liquidity and mobilise more long-term capital for Nigerian businesses.

FTSE Russell confirmed on Thursday that Nigeria’s reclassification from “Unclassified” to “Frontier Market” status would proceed from the opening of trading on Sept. 21, 2026.

The decision followed an additional assessment of Nigeria’s transition from a T+2 to T+1 settlement cycle, which had raised concerns among international investors over possible difficulties in completing transactions within the shorter settlement period.

FTSE Russell, however, said its assessment found no material settlement, operational or funding issues since the implementation of T+1.

Popoola described the development as an important milestone but stressed that the real opportunity was to convert Nigeria’s renewed international visibility into deeper participation and stronger capital formation.

He said NGX would continue working with the Federal Government, Securities and Exchange Commission and other stakeholders to build a globally competitive capital market that could play a greater role in financing Nigeria’s economic growth.

Nigeria’s reclassification follows improvements in foreign exchange liquidity, capital repatriation and market accessibility. The country had been removed from FTSE Russell’s Frontier Market indices in September 2023 and placed in the “Unclassified” category after persistent difficulties faced by foreign investors.

The latest development is expected to improve the visibility of Nigerian equities among international institutional investors and potentially encourage greater foreign portfolio participation.

Popoola said the market must now build on the progress achieved and ensure that Nigeria’s capital market becomes increasingly relevant to the country’s economic development.

He expressed confidence that continued reforms and collaboration among market stakeholders would help Nigeria progress towards higher international market classifications in the future.