Global index provider, FTSE Russell, on Tuesday has placed its planned reclassification of Nigeria back to Frontier Market status under “further review”.
It hinged the decision on the need to allow the index provider to critically assess how Nigeria’s recent transition to a shortened T+1 settlement cycle (clearing and settling trades one business day after execution) affects international institutional investors.
The global investment market index provider stated that it would provide a definitive update on Nigeria’s potential return to the Frontier Market index by the end of August this year.
Nigeria had originally been upgraded from “Unclassified” back to “Frontier Market” status during the March 2026 interim review—with an effective implementation date set for September 2026.
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The firm clarified: “From 01 June 2026, the Nigerian equity market transitioned from a T+2 to T+1 settlement cycle, which could result in Nigeria becoming a de facto prefunded market for international institutional investors.
“A requirement to prefund equity trades is deemed a negative for the ‘Settlement Cycle (DvP)’ criterion, which is one of the five core FTSE Quality of Markets criteria required for attaining Frontier market status within the FTSE Equity Country Classification scheme.
“Consequently, the reclassification of Nigeria is under further review to assess the implications of the transition to a T+1 settlement cycle for international institutional investors. FTSE Russell will provide an update on the status of Nigeria’s potential reclassification to Frontier market status by the end of August 2026”, it added.
It would be recalled that Nigeria’s planned return to Frontier Market status was originally confirmed during FTSE Russel’s March 2026 Interim Review, with the timeline for the implementation set for September 2026 before the latest postponement.
Nigeria formally adopted the T+1 settlement cycle on June 1, 2026, reducing the securities settlement period from two business days to one.
The FTSE Russell’s “Settlement Cycle (DvP)” assessment is one of five key Quality of Markets criteria used in determining Frontier Market eligibility, and currently the United States, Indian and Canadian markets are already operating T+1 settlement systems.
