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FTSE Russell has announced the reclassification of Nigeria from “Unclassified” to “Frontier market status,” ending a more than two-year hiatus that saw the country excluded from its indices.

The announcement was made by FTSE Russell via a communication to the Nigerian Exchange and seen by Nairametrics.

The move signals renewed investor confidence and is expected to open Nigeria’s stock market to increased foreign capital inflows, further boosting a market that has already gained over 29% this year.

FTSE Russell said the decision followed recommendations from its advisory bodies, reflecting improved market conditions. The reclassification is expected to take effect from September 2026.

Commenting on the development, the Group Managing Director/Chief Executive Officer of Nigerian Exchange Group Plc, Temi Popoola, described the move as a significant milestone for the Nigerian capital market.

He added that the achievement reflects sustained collaboration among regulators, market operators, and stakeholders in positioning Nigeria as a competitive destination for global capital.

FTSE Russell had earlier placed Nigeria on its Watch List in October 2025 for a possible reclassification.

This followed its 2025 Annual Equity Country Classification Review, which highlighted improvements in foreign exchange liquidity.

These developments set the stage for Nigeria’s eventual re-entry into the Frontier Market category.

FTSE Russell’s Quality of Markets (QoM) Review presented a mixed outlook on Nigeria’s capital market. While some improvements were noted, structural challenges remain.

Overall, the review suggests that while progress has been made, deeper reforms are still required to enhance market quality.

Nigeria’s reclassification marks a potential reversal of its 2023 downgrade, when FTSE removed the country from its indices due to FX illiquidity concerns.

The re-entry into FTSE’s Frontier Market index is therefore seen as a critical step toward rebuilding investor trust and attracting sustainable foreign capital into Nigeria’s equity market.