Business
FTSE Russell to reclassify Nigeria into Frontier Market status
FTSE Russell has confirmed, in a market notice published on Thursday, that Nigeria’s reclassification from Unclassified to Frontier Market status will proceed effective from the open of trading on 21 September.
The decision marks Nigeria’s return to the global Frontier Market universe and represents an important milestone for the country’s capital market.
The announcement follows a process that began in October 2025, when FTSE Russell placed Nigeria on its Watch List for potential reclassification, following improvements in foreign exchange liquidity, capital repatriation and market accessibility.
In April 2026, FTSE Russell subsequently announced Nigeria’s return to Frontier Market status, with an effective date of 21 September.
Following Nigeria’s transition from a T+2 to T+1 settlement cycle on 1 June, FTSE Russell undertook an additional assessment after market participants raised concerns that the new settlement framework could effectively result in a de facto prefunding requirement for international institutional investors.
The review led to an extensive period of engagement between NGX Group, the Securities and Exchange Commission (SEC), FTSE Russell and international market participants.
In its reaction, NGX Group said its delegation engaged directly with global custodians and institutional investors in July. The discussions provided an opportunity for NGX Group to present evidence on the operation of the T+1 settlement cycle, address questions raised by international investors and custodians, and outline ongoing efforts to ensure that Nigeria’s market infrastructure remains aligned with evolving international best practice.
Following the assessment, FTSE Russell, supported by feedback from the FTSE Equity Country Classification Advisory Committee, confirmed that “no material settlement, operational or funding issues had been observed since the implementation of the T+1 settlement cycle”. On this basis, the FTSE Russell Index Governance Board confirmed that Nigeria’s reclassification will proceed as scheduled from the market open on Monday, 21 September 2026.
The announcement comes amid broader efforts to strengthen the Nigerian capital market and position it as an increasingly important engine of investment and economic growth.
On 6 August, the NGX Group Board met with President Bola Ahmed Tinubu at the Presidential Villa in Abuja to brief him on developments and reforms across the Nigerian capital market and discuss the market’s role in mobilising long-term capital to support Nigeria’s economic transformation agenda.
The engagement underscored the importance of continued collaboration between government and the capital-market ecosystem in creating an enabling environment for investment, capital formation and sustainable economic growth.
Nigeria’s return to Frontier Market status provides further international recognition of the progress being made across the market and creates a platform for the next phase of its development.
Commenting on the development, Temi Popoola, Group Managing Director/Chief Executive Officer, NGX Group, said, “This is an important moment for Nigeria’s capital market. But the real significance of returning to Frontier Market status is the opportunity it creates for the next phase of our market’s development.
We have to turn greater international visibility into broader participation, deeper liquidity and more capital for Nigerian businesses. 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 and the commitment of stakeholders across the market as we work towards that ambition.”
The next milestone will be the publication of the FTSE Frontier Index Series annual indicative review files for September 2026, which will reflect Nigeria’s reclassification and are scheduled to begin publication on Wednesday, 2 September 2026. The reclassification will take effect from the market open on Monday, 21 September 2026.
Nigeria’s return to Frontier Market status is expected to enhance the visibility of Nigerian equities within the global investment community and create further opportunities to broaden engagement with international institutional investors and deepen participation in the Nigerian market.
The development follows S&P Dow Jones Indices’ placement of Nigeria on its Watch List for potential reclassification to Frontier Market status as part of its 2027 Country Classification Annual Review, providing a further indication of growing international attention to improvements in Nigeria’s market accessibility.
NGX Group reaffirms its commitment to continued collaboration with the Federal Government, SEC, market operators, investors, global index providers and other stakeholders to strengthen Nigeria’s position within the international financial ecosystem and ensure that the capital market plays an increasingly important role in sustainable economic growth and capital formation.
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Dangote Petroleum Refinery and Petrochemicals FZE plans to double its labour force to meet its target of doubling its processing capacity by 2029.
“Well, within the refinery, the workforce will practically become double, except in the water treatment section, because there we already have substantial capacity,” Edwin Devakumar, vice president, oil & gas and fertiliser at Dangote Industries Limited, told journalists at the refinery in Lagos on Friday.
He observed that labour expansion in the transport segment might not be significant, except in the case of an increase in local consumption.
“Obviously, we don’t expect a substantial increase in the consumption of petrol and diesel within the country in the short term,” he added.
The oil processing plant is on a drive to raise N2.2 trillion ($1.6 billion) in equity capital from retail investors to finance a major expansion from 700,000 barrels per day (bpd) to 1.4 million bpd.
On Monday, when it opened its order book to the public, setting the capital raise programme in motion, overwhelming subscription traffic, which attracted billions of naira in demand to the offer in its first few minutes, triggered downtime across a couple of trading platforms across Nigeria.
Bamboo and Cowrywise, two of several fintech and digital application channels approved by Nigeria’s Securities and Exchange Commission to facilitate transactions for the offer, reported outages on their social media posts, with Bamboo said to have seen a 1,000-fold jump in traffic compared to regular days.
The pan-African share sale, dubbed by Mr Dangote as “the people’s IPO,” is broadly tapping into Nigeria’s fintech infrastructure to drive inclusion across the continent’s most populous country, with a minimum subscription of 10 units, equivalent to N5,250.
Towards that end, the transaction is targeting investors as diverse as traders, cooks, drivers and managers, giving “every human being living on the continent to be part of this action,” Mr Dangote told attendees at the sign-off ceremony of the offer documents in Lagos last week.
The green shoe option in the offer gives Dangote Refinery the flexibility to allot 30 per cent of the excess shares if the IPO is oversubscribed.
Should that happen, it will make the IPO not just Africa’s biggest yet but also the largest-ever among frontier markets, Temi Popoola, the CEO of the Nigerian Exchange (NGX), said this week while responding to questions on CNN.
Compared to the first phase of the refinery project, which cost $20 billion and suffered construction delays, the expansion will cost less, Mr Devakumar said, because there won’t be a need to build most of the infrastructure used in the first stage, including a granite quarry and a port facility.
“The equipment, per se, will be the same because it’s a replica. But at the same time, we are trying to cut down on engineering and design costs because most of that will again be a replica. So we have told the design engineers, reduce your cost, and they have already agreed,” he said.
The current expansion plan at the fertiliser unit is expected to increase annual output from 3 million tons to 12 million tons.
READ ALSO: What Dangote IPO signals – NGX Chairman
Apart from Lagos, where it is pursuing a primary listing, the Dangote Refinery is also looking to float its shares on bourses in Africa, including Johannesburg and Nairobi. A cross-border listing outside Africa, most likely in the US, is under consideration and could happen in three to four years.
According to Minister of Industry, Trade and Investment Jumoke Oduwole, listing the refinery’s shares on the NGX could lift market capitalisation by $60 billion.
The company logged $1.8 billion in after-tax profit for the six months to June, when revenue topped $13 billion, according to the offer prospectus, riding on the soaring oil prices that followed the outbreak of the US war against Iran.
That compares to a net loss of $476 million recorded for last year.
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