Nigeria’s capital market has received international recognition after S&P Dow Jones Indices (S&P DJI) placed the country on its 2027 Country Classification Watchlist for a possible upgrade from a Standalone Market to Frontier Market status.
The development means Nigeria will undergo formal assessment during the 2027 market classification review, although the inclusion does not represent an immediate reclassification.
According to S&P DJI, the decision reflects improvements in Nigeria’s regulatory framework, transparency, enforcement mechanisms and overall market integrity.
The global index provider said sustained policy implementation and operational resilience would be critical in determining whether Nigeria qualifies for Frontier Market classification.
The potential upgrade follows a series of reforms led by the Securities and Exchange Commission (SEC), in collaboration with the Nigerian Exchange Group (NGX Group), Central Securities Clearing System (CSCS) and other capital market stakeholders.
The reforms are focused on strengthening investor protection, improving transparency, modernising post-trade infrastructure, enhancing market efficiency and aligning Nigeria’s capital market with global standards.
SEC Director-General, Dr Emomotimi Agama, said the commission remained committed to developing a modern market structure through initiatives such as faster settlement systems, tokenised securities and deeper derivatives markets.
Agama said the priority was to maintain a fair, orderly and transparent market capable of supporting long-term capital formation while safeguarding investors.
Also commenting on the development, NGX Group Managing Director and Chief Executive Officer, Temi Popoola, described Nigeria’s inclusion on the watchlist as a positive indication of growing global confidence in the country’s capital market reforms.
Popoola said the recognition reflected the combined efforts of regulators, market operators and infrastructure institutions toward building a transparent, efficient and globally competitive marketplace.
Meanwhile, Bloomberg reported that Nigerian equities have emerged as the world’s best-performing stock market in U.S. dollar terms this year.
The report said Nigeria’s benchmark stock index has gained 67 per cent in dollar terms since the beginning of the year, slightly ahead of South Korea’s Kospi Index, which recorded a 66 per cent increase.
Bloomberg attributed Nigeria’s market performance to gains by financial services companies listed on the Nigerian Exchange, improved foreign exchange liquidity, economic reforms and renewed investor confidence.
The report noted that Fortis Global Insurance Plc recorded one of the strongest performances, with an estimated 1,400 per cent return in dollar terms this year.
Unlike South Korea, where technology and artificial intelligence-related companies have driven market growth, Nigeria’s rally has been largely supported by domestic economic reforms and increased investor optimism.
