S&P Puts Nigeria on 2027 Frontier Watchlist as FTSE Delays Reclassification
Updated
Updated · Business Insider Africa · Jul 9
S&P Puts Nigeria on 2027 Frontier Watchlist as FTSE Delays Reclassification
3 articles · Updated · Business Insider Africa · Jul 9
Summary
Nigeria was added to S&P Dow Jones Indices’ 2027 watchlist for a possible move from Standalone back to Frontier Market status, with a final decision due in the 2027 annual review.
S&P cited reforms that improved market transparency, integrity and accessibility, but said consistent policy implementation and operational resilience must hold through the rest of 2026.
The move came days after FTSE Russell paused Nigeria’s planned September 2026 return to its Frontier Market index to test whether the new T+1 settlement cycle works smoothly for foreign institutional investors.
A Frontier upgrade would widen Nigeria’s visibility to global institutional and passive investors, supporting efforts to reverse years of foreign outflows tied to FX shortages, repatriation problems and market-access concerns.
With S&P and FTSE divided, is Nigeria's market reform a real opportunity or a trap for unwary global investors?
Will the promised foreign capital boom from a 'Frontier' status upgrade actually benefit the average Nigerian citizen?
Nigeria’s T+1 Settlement Reform and the Race for Frontier Market Reclassification: FTSE Russell and S&P DJI Decisions Loom
Overview
Nigeria’s move from a T+2 to a T+1 settlement cycle aims to reduce counterparty risks and boost market liquidity, aligning with global best practices. However, FTSE Russell is reviewing Nigeria’s market classification, concerned that T+1 could force international investors to prefund trades, which is seen as a negative under its settlement criteria. This has delayed Nigeria’s upgrade to Frontier Market status. While local regulators highlight the benefits of faster settlements, the outcome of FTSE Russell’s review will be crucial for Nigeria’s visibility and attractiveness to global investors.