By Henry Ojelu
LAGOS — Stakeholders in Nigeria’s capital market have commended the Federal Government, particularly the Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, for reforms that helped restore Nigeria to the global Frontier Market universe of FTSE Russell.
Their commendation followed confirmation by global index provider, FTSE Russell, that Nigeria’s capital market would be reclassified from “Unclassified” to “Frontier Market” status, effective from the opening of trading on September 21, 2026.
The development marks Nigeria’s return to the global Frontier Market universe nearly three years after it was removed from the classification in September 2023 over challenges relating to foreign exchange liquidity, capital repatriation and market accessibility.
Market stakeholders described the reclassification as a significant boost to Nigeria’s international visibility and an opportunity to attract foreign investment and deepen the domestic capital market.
Group Managing Director/Chief Executive Officer of Nigerian Exchange Group, NGX, Temi Popoola, said the development presented an opportunity to deepen the market, broaden international participation and mobilise more long-term capital for Nigerian businesses.
Popoola acknowledged the continued support of the Federal Government, the Securities and Exchange Commission, SEC, and other stakeholders in the reform process.
“Our ambition is to build a market that is increasingly competitive globally and more relevant to Nigeria’s economic growth. We are encouraged by the continued support of the Federal Government, SEC and the commitment of stakeholders across the market as we work towards that ambition,” he said.
The Federal Government attributed the development to coordinated efforts by the Ministry of Finance, SEC, Central Bank of Nigeria, CBN, NGX Group, Central Securities Clearing System, CSCS, and other market operators.
Also endorsing the development, the 14th President and Chairman of Council of the Chartered Institute of Stockbrokers, CIS, Dr Fiona Ahimie, said Nigeria’s return to Frontier Market status would restore the country’s visibility and eligibility within the FTSE Russell global index framework.
According to her, the move could, over time, support increased foreign portfolio investment by putting Nigerian equities back on the radar of global frontier-market investors.
She, however, cautioned that the immediate impact should not be overstated, noting that reclassification would not automatically translate into a surge of foreign capital.
Ahimie said longer-term benefits could include improved liquidity, broader investor participation and stronger valuations, provided Nigeria sustained reforms around foreign exchange liquidity, capital repatriation, policy consistency and macroeconomic stability.
Chairman of the Association of Securities Dealing Houses of Nigeria, ASHON, Sehinde Adenagbe, described the return as significant, saying it enhanced the international visibility and credibility of the Nigerian capital market.
He added that increased foreign participation could improve liquidity, broaden the investor base and enhance capital allocation, while encouraging listed companies to strengthen corporate governance, disclosure and investor-relations practices.
The development also highlights the broader fiscal reform agenda associated with Oyedele.
Appointed Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms in July 2023, Oyedele led the committee through the development of four tax reform bills, which were passed by the National Assembly in May 2025.
The reforms culminated in the Tax Acts 2025, aimed at modernising tax administration, improving compliance, broadening the tax base and strengthening revenue mobilisation.
Oyedele has also been closely associated with efforts to improve Nigeria’s fiscal position and restore investor confidence following the difficult economic adjustments triggered by fuel subsidy removal and foreign exchange reforms.
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