Analysts disagree with FTSE Russell over T+1 market reform
Analysts at the Nigerian capital market have mounted a strong defence of the country’s recent T+1 settlement reform after FTSE Russell suspended its planned reclassification of Nigeria to Frontier Market status.
The global index provider announced the decision on Tuesday, citing the need for further assessment of the operational impact of Nigeria’s transition to a T+1 settlement cycle.
Market operators, however, argue that the decision places undue emphasis on a single operational issue while overlooking the broader regulatory, technological and structural reforms that have strengthened Nigeria’s capital market over the past few years.
The postponement has surprised many stakeholders who viewed the migration to T+1 settlement as an important milestone in improving market efficiency and aligning Nigeria with global best practices.
Rather than celebrating the reform, operators say the delay risks overshadowing years of progress that had positioned Nigeria for its expected return to FTSE Russell’s Frontier Market Index.
Several market leaders have criticised the decision, describing it as an incomplete assessment of Nigeria’s overall market quality. Chief Executive Officer of Wyoming Capital & Partners, Tajudeen Olayinka, argued that Nigeria’s increasingly strong domestic institutional and retail investor base deserves greater recognition because it provides stability during periods of global volatility and reduces excessive reliance on foreign portfolio investors.
Vice President of Highcap Securities Limited, David Adonri, maintained that market quality should not be measured through a single operational criterion in isolation. According to him, liquidity, regulatory oversight, technological infrastructure, transparency and investor participation collectively provide a more balanced assessment of market maturity.
Chief Operating Officer of InvestData Consulting Limited, Ambrose Omordion, described the transition as a long-term infrastructure reform that will ultimately improve market efficiency, transparency and resilience after an initial adjustment period.
FTSE Russell had confirmed Nigeria’s return to Frontier Market status in March 2026, with implementation scheduled for September 2026. Tuesday’s announcement has now placed that timeline under review, with a final decision expected before the end of August.
