Popular financial analyst and Professor of Accounting, Prof. Godwin Oyedokun, has reacted to plans by global index provider FTSE Russell to reclassify Nigeria as a Frontier Market, saying the country should focus on improving its investment environment rather than lobbying for a better market classification.
Oyedokun, in an interview with Nigerian Newssphere on Thursday, said the proposed reclassification should not be viewed as an economic disaster but as a wake-up call for Nigeria to address longstanding challenges affecting foreign investors.
His comments come amid reports that FTSE Russell is set to reclassify Nigeria in September after placing the country’s classification under “further review” following concerns about the transition of the Nigerian capital market from a T+2 to T+1 settlement cycle on June 1, 2026.
FTSE Russell’s June review had paused its earlier decision to reclassify Nigeria as a Frontier Market.
Reacting to the development, Oyedokun said Nigeria must prioritise foreign-exchange liquidity, capital repatriation, market accessibility, regulatory transparency and investor confidence.
“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,” he told DAILY POST.
According to him, the real concern should not be whether Nigeria is classified as a Frontier or Emerging Market, but whether international investors can operate in the country without unnecessary uncertainty.
“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,” he said.
Oyedokun urged the Federal Government to see the FTSE Russell review as an opportunity to strengthen the country’s investment climate.
“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,” he added.
The accounting professor stressed that Nigeria should not lobby international index providers to secure a better classification.
“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 said.
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 opening of trading on September 21, 2026.
FTSE Russell had 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.
