Barbara Bako, Abuja.
The Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, has urged Nigerian policymakers and financial regulators to maintain policy consistency and strengthen market resilience as the country seeks to regain Frontier Market status in 2027.
Agama made the call following Nigeria’s placement on the S&P Dow Jones Indices (S&P DJI) 2027 Watchlist for possible reclassification from a Standalone to a Frontier Market, describing the development as a major opportunity to restore investor confidence and attract increased foreign portfolio investment.
In a strategy paper titled Nigeria’s Path to Index Reclassification: A Unified Strategy on Policy Consistency and Operational Resilience, Agama said the S&P DJI decision, alongside an ongoing Frontier Market review by FTSE Russell, marks Nigeria’s best chance in a decade to secure improved global market recognition.
He said international index providers were no longer assessing the design of reforms but their consistent implementation and the reliability of the country’s financial market infrastructure.
“The reform programme is complete; the evidence programme now begins,” Agama stated, stressing that Nigeria’s focus should now be on proving that existing reforms are effective rather than introducing new policies.
According to him, S&P DJI acknowledged improvements in Nigeria’s regulatory framework, market transparency, enforcement and overall market integrity, but indicated that the country’s performance during the observation period through the rest of 2026 would determine its eligibility for reclassification.
Agama also noted that FTSE Russell’s ongoing review was partly prompted by Nigeria’s successful migration to a T+1 settlement cycle in June 2026, placing the country’s capital market ahead of many frontier and some emerging markets in settlement efficiency.
Although S&P DJI and FTSE Russell employ different assessment methodologies, he said both institutions are evaluating similar indicators, including foreign exchange repatriation, settlement efficiency, regulatory consistency and the resilience of market infrastructure.
The SEC Director-General warned that policy reversals, discretionary regulatory actions, retroactive directives and restrictions on foreign exchange access could weaken Nigeria’s chances of achieving Frontier Market classification.
He identified five critical areas requiring sustained policy consistency: stability of the foreign exchange regime, uniform regulatory enforcement, avoidance of retrospective policy changes, coordination among fiscal, monetary and regulatory authorities, and predictable protection of investor rights through the judicial system.
On operational resilience, Agama said Nigeria must demonstrate sustained efficiency under its T+1 settlement regime, timely foreign exchange repatriation, improved FX market liquidity, reliable trading infrastructure, orderly market operations during periods of volatility and consistent performance throughout the review period.
To coordinate the country’s reclassification efforts, the SEC has proposed establishing an Index Reclassification Steering Committee comprising representatives of the Commission, the Central Bank of Nigeria, the Federal Ministry of Finance, the Federal Inland Revenue Service, the Nigerian Exchange, the Central Securities Clearing System and FMDQ.
The Commission also plans to publish a quarterly Reclassification Evidence Pack containing certified data on settlement performance, foreign exchange repatriation timelines, market liquidity, infrastructure resilience, regulatory enforcement and dispute resolution.
The reports will be submitted simultaneously to S&P DJI, FTSE Russell and MSCI.
Agama disclosed that the SEC would also engage global custodian banks before the third-quarter 2026 survey to address operational concerns before they are escalated to index providers.
He cautioned against actions that could derail the review process, including restrictions on for
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