Nigerian Exchange Engages FTSE Russell, Investors Over Nigeria’s T+1 Settlement, Market Reclassification

The Nigerian Exchange Group has engaged with FTSE Russell, global institutional investors and custodians in London to address concerns following the index provider’s decision to pause Nigeria’s reclassification to Frontier Market status.

The engagements centered on Nigeria’s new T+1 settlement cycle, with the NGX seeking clarity and presenting reforms aimed at aligning the market with international standards.

According to Nairametrics, a senior NGX official, who was at the meeting said that the engagement provided an opportunity for Nigerian market stakeholders to seek clarity on the reasons behind FTSE Russell’s hesitation and outline ongoing reforms designed to strengthen investor confidence.

According to the source, the discussions were ‘fruitful and frank’, with both sides exchanging views on the issues affecting Nigeria’s market status.

The delegation thanked FTSE Russell for granting the meeting at short notice and sought detailed explanations on the factors that informed the index provider’s latest decision, with the aim of addressing outstanding concerns.

“A key focus of the discussions was Nigeria’s transition to a T+1 settlement cycle, which came into effect last month after extensive consultations among regulators, market operators, infrastructure providers, and other stakeholders,” the source said.

According to the source, the delegation emphasized that the T+1 framework was jointly developed through industry-wide consultations and has been operating smoothly since its implementation.

The team also highlighted that the Securities and Exchange Commission (SEC) approved the transition and reiterated Nigeria’s readiness to address any concerns within the framework of the new settlement cycle.

The delegation also presented proposals aimed at further aligning Nigeria’s market operations with international best practices under the T+1 regime and is awaiting feedback from FTSE Russell and other stakeholders.

According to the source, the strong participation of major institutional investors and global custodians contributed significantly to the success of the engagement, creating an atmosphere of openness and trust during the discussions.

FTSE Russell had last month placed its planned reclassification of Nigeria back to Frontier Market status under ‘further review’.

The organization said the decision was to allow the index provider to thoroughly 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 index provider stated that it will provide a definitive update on Nigeria’s potential return to the Frontier Market index by the end of August 2026.

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.

Speaking on the development, a public finance expert, Dr. Khalid Ahmed, commended the leadership of the NGX for making the bold move.

“Behind engagements like these lies something far greater than a series of meetings. They represent strategic efforts to strengthen investor confidence, enhance market credibility, improve capital flows, and reinforce Nigeria’s position within the global financial ecosystem,” he said.

While emphasizing that capital markets thrive on confidence, transparency, sound governance, and continuous engagement with global investors, Ahmed added that strengthening these relationships is essential not only for market development but also for unlocking economic opportunities that drive business growth, job creation, innovation, and national prosperity.