The delegation, led by NGX Chairman Umaru Kwairanga, met with key players in the global investment community to explain recent reforms in Nigeria’s capital market, particularly the country’s transition to a T+1 settlement system.
The engagement comes after FTSE Russell recently delayed its planned reclassification of Nigeria as a Frontier Market, saying it needed more time to evaluate the impact of the new settlement framework on international institutional investors.
A senior NGX official who participated in the meeting told Nairametrics that the discussions provided an opportunity for Nigerian stakeholders to understand FTSE Russell’s concerns and present measures being implemented to improve market accessibility, efficiency and investor confidence.
NGX, FTSE Russell Hold “Fruitful and Frank” Discussions
According to the NGX official, the meeting was productive, with both parties openly discussing issues affecting Nigeria’s market position.
The delegation appreciated FTSE Russell for granting the meeting at short notice and requested further clarification on the factors behind the decision to place Nigeria’s reclassification under review.
The source said the discussions focused largely on Nigeria’s move to a T+1 settlement cycle, which became operational last month after consultations involving regulators, market operators, financial infrastructure providers and other industry stakeholders.
“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.
The delegation explained that the new settlement system was developed through a broad industry process and had been functioning effectively since implementation.
The team also highlighted the role of the Securities and Exchange Commission (SEC) in approving the transition and reaffirmed Nigeria’s willingness to resolve any operational concerns associated with the new framework.
Nigeria Presents Reform Plans to Global Investors
During the London engagement, the NGX delegation also presented proposals aimed at further aligning Nigeria’s market operations with global standards under the T+1 settlement system.
The proposals are expected to receive feedback from FTSE Russell and other international stakeholders as discussions continue.
The participation of major institutional investors and global custodians was described as a key factor in the success of the engagement, with stakeholders creating an environment for open discussions on market confidence and investment accessibility.
Why FTSE Russell Delayed Nigeria’s Reclassification
FTSE Russell had recently placed Nigeria’s planned return to Frontier Market status under “further review”.
The global index provider said the additional assessment was necessary to determine how Nigeria’s transition to a shortened T+1 settlement cycle — where securities transactions are completed one business day after execution — would affect foreign institutional investors.
FTSE Russell is expected to provide an update on Nigeria’s possible inclusion in its Frontier Market index by the end of August 2026.
Nigeria had previously moved from “Unclassified” status back to “Frontier Market” classification during FTSE Russell’s March 2026 interim review, with implementation expected in September 2026.
Expert Says Engagement Could Boost Investor Confidence
Commenting on the development, public finance expert Dr. Khalid Yusuf Ahmed praised the NGX leadership for engaging directly with global market stakeholders.
“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.
Ahmed noted that capital markets depend heavily on confidence, transparency, good governance and consistent communication with investors.
He added that stronger relationships with global financial institutions could help attract investment, support business expansion, encourage innovation and contribute to economic growth.
S&P DJI Places Nigeria on Watchlist for Possible Upgrade
The FTSE Russell development came shortly before another global index provider, S&P Dow Jones Indices (S&P DJI), placed Nigeria on its 2027 watchlist for possible reclassification as a Frontier Market.
S&P DJI said it would monitor developments in Nigeria throughout 2026 before making a final decision during its 2027 Country Classification Annual Review.
The index provider acknowledged reforms aimed at improving transparency, regulatory enforcement, market integrity and accessibility.
However, it stressed that sustained policy implementation and stronger operational resilience would be important factors in determining whether Nigeria receives an upgrade.
The latest engagements highlight Nigeria’s broader efforts to rebuild confidence among international investors and strengthen its position within the global capital market system.