Financial analyst and Professor of Accounting, Godwin Oyedokun, has reacted to plans by global index provider, FTSE Russell, to reclassify Nigeria as a Frontier Market.
Oyedokun, in an interview with DAILY POST on Thursday, said Nigeria should not lobby international index providers for reclassification.
This comes amid reports that FTSE Russell is set to reclassify Nigeria in September after placing the country’s reclassification under “further review” over concerns that the Nigerian capital market moved from a T+2 to T+1 settlement cycle on June 1, 2026.
FTSE Russell’s June review status on Nigeria had paused its earlier decision to reclassify Africa’s most populous country as a Frontier Market.
However, the latest reported position has sparked reactions from experts over its potential impact on the country’s economy.
Reacting, Oyedokun stressed that the country should focus on creating a better investment environment that makes an improved classification inevitable.
He, however, said FTSE Russell’s proposed reclassification to Frontier Market status is a step forward and should be treated as a wake-up call.
According to him, international investors want to be able to enter the Nigerian market easily, invest confidently and repatriate their funds without unnecessary uncertainty.
“I would not describe the reported FTSE Russell development as an economic disaster.
“Nigeria was previously moved to Unclassified status, and the proposed move to Frontier Market status is actually a step forward from that position. The concern is that the review highlights persistent questions around foreign-exchange liquidity, repatriation of capital, market accessibility and the implementation of reforms such as T+1 settlement.
“For Nigeria, the issue is bigger than the label Frontier or Emerging Market. International investors want to be able to enter the Nigerian market easily, invest confidently and repatriate their funds without unnecessary uncertainty.
“Government should therefore treat the FTSE Russell review as a wake-up call, not a political controversy. Nigeria needs deeper market liquidity, transparent regulation, predictable policies, efficient settlement systems and stronger investor protection.
“We should not lobby international index providers for a better classification; we should create an investment environment that makes a better classification inevitable. The real upgrade is not the FTSE label; it is restoring and sustaining investors’ confidence in Nigeria,” he told DAILY POST.
Recall that Nigeria was originally reclassified from “Unclassified” to “Frontier Market” status following FTSE Russell’s March 2026 interim review, with implementation scheduled to take effect from the open of trading on September 21, 2026.
FTSE Russell, in September 2023, removed Nigeria from its Frontier Market status following persistent difficulties experienced by international investors in repatriating capital and executing foreign-exchange transactions.
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