Lagos, Nigeria (VOICE OF NAIJA)- THE Nigerian Exchange Group (NGX Group) and the Securities and Exchange Commission (SEC) have described Nigeria’s inclusion on the S&P Dow Jones Indices (S&P DJI) 2027 Country Classification Watchlist as a strong endorsement of the country’s ongoing capital market reforms and growing international investor confidence.
Earlier this month, S&P DJI placed Nigeria on its watchlist for a possible upgrade from “Standalone Market” to “Frontier Market” status, citing significant improvements in market transparency, regulatory oversight and overall market integrity.
Reacting to the development, SEC Director-General Emomotimi Agama and NGX Group Chief Executive Officer Temi Popoola said the decision reflects increasing global recognition of reforms being implemented across Nigeria’s capital market ecosystem.
Popoola described the watchlist inclusion as an important milestone that validates the collaborative efforts of regulators, market infrastructure institutions and capital market operators to strengthen the Nigerian market.
While noting that the country’s reclassification is yet to be confirmed, he said the achievement reinforces the need to sustain the current reform momentum.
“Our priority now is to deepen liquidity, improve market accessibility and sustain investor confidence. NGX Group remains focused on positioning Nigeria as a preferred destination for both domestic and international capital,” Popoola said.
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Agama reaffirmed the SEC’s commitment to building a more efficient, transparent and globally competitive capital market.
According to him, the Commission is implementing forward-looking reforms aimed at modernising market infrastructure and expanding investment opportunities.
“Our focus remains on sustaining a fair, orderly and transparent market that protects investors and supports long-term capital formation,” Agama said.
He added that the Commission would continue working closely with exchanges, market infrastructure institutions and other stakeholders to strengthen policy consistency, governance and operational resilience.
Among the SEC’s priority initiatives are faster settlement systems, the introduction of tokenised securities and the development of deeper derivatives markets to improve market efficiency and broaden investment options.
Industry stakeholders say Nigeria’s watchlist inclusion represents the first stage of a structured review process, with S&P DJI expected to make a final decision on the country’s market classification in 2027.
If approved, Frontier Market status would significantly enhance Nigeria’s visibility among global institutional investors and increase its eligibility for international frontier market investment funds.
Vice Chairman of Highcap Securities Limited, David Adonri, said an upgrade would improve Nigeria’s inclusion in frontier market benchmark indices, support stronger foreign portfolio investment inflows and reinforce confidence in the country’s financial market infrastructure.
According to S&P DJI, Nigeria has made notable progress in strengthening regulatory transparency, investor protection and market enforcement.
However, the index provider cautioned that maintaining policy consistency and demonstrating operational resilience over the coming months will be critical in determining whether the country ultimately secures Frontier Market classification.
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Nigeria’s recent capital market reforms have been driven jointly by the SEC, NGX Group and the Central Securities Clearing System (CSCS).
The institutions have focused on enhancing investor protection, improving market transparency, modernising post-trade infrastructure and aligning Nigeria’s capital market with international best practices.
Although watchlist inclusion does not guarantee an eventual upgrade, both the SEC and NGX Group believe it sends a strong signal that Nigeria’s reform agenda is gaining international recognition.
For market regulators, the priority now is to sustain reform implementation, deepen market liquidity and strengthen investor confidence as Nigeria positions itself for a potential return to Frontier Market status in 2027.
