Nigeria's capital market has received a major boost 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 a Frontier Market.
According to S&P DJI, Nigeria's inclusion on the watchlist reflects significant improvements in the country's regulatory environment, transparency, enforcement and overall market integrity. While the move does not immediately change Nigeria's classification, it places the country under formal review for a potential Frontier Market upgrade in 2027.
The review follows a series of reforms led by the Securities and Exchange Commission (SEC), the Nigerian Exchange Group (NGX Group), the Central Securities Clearing System (CSCS) and other capital market stakeholders to strengthen investor protection, improve transparency, modernise market infrastructure and align Nigeria's capital market with global standards.
SEC Director-General, Dr. Emomotimi Agama, said the commission remains committed to building a modern and transparent market through faster settlement systems, tokenised securities and deeper derivatives markets.
NGX Group Managing Director and Chief Executive Officer, Temi Popoola, described the watchlist inclusion as a strong vote of confidence in Nigeria's ongoing capital market reforms.
Meanwhile, Bloomberg reported that Nigeria's benchmark stock index has returned 67 per cent in U.S. dollar terms since the start of the year, edging out South Korea's Kospi Index, which gained 66 per cent.
According to the report, Nigeria's impressive performance has been driven largely by financial services companies listed on the Nigerian Exchange, with Fortis Global Insurance Plc posting an estimated 1,400 per cent return in dollar terms this year.
Bloomberg added that, unlike South Korea's technology-driven rally, Nigeria's market growth has been fuelled by domestic economic reforms, improved foreign exchange liquidity and renewed investor confidence.
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