FTSE Russell review not a setback for Nigeria, says CIS

The institute highlighted Nigeria's new T+1 settlement cycle, implemented on June 1, 2026, as a landmark achievement, making it the first African capital market to adopt this shortened settlement period. This reform aligns Nigeria with global markets, improving efficiency, reducing settlement risk, and enhancing liquidity. FTSE Russell's concerns reportedly center on whether the T+1 cycle could create a prefunded market for international investors.

However, the CIS clarified that Nigeria's migration to T+1 has not altered its Delivery versus Payment settlement model, meaning foreign portfolio investors are not required to prefund transactions. The institute emphasized that the review period offers an opportunity for stakeholders to engage with FTSE Russell and demonstrate the efficiency of Nigeria's settlement infrastructure. They cited Pakistan's experience, which adopted T+1 settlement while retaining its Frontier Market status, as evidence of compatibility.

The CIS urged Nigerian capital market stakeholders to continue reforms, including strengthening foreign exchange accessibility and improving cross-border settlement coordination, to address outstanding concerns and secure Nigeria's return to Frontier Market status.