FTSE Russell names 10 Nigerian stocks eligible for frontier indexes

AT least 10 Nigerian companies have been cleared for potential inclusion in FTSE Russell’s frontier market index series as the country prepares to regain frontier market status.

The companies were identified in FTSE Russell’s September 2026 review of its index series released on Wednesday.

The list comprises GTCO Holdings, Zenith Bank, Dangote Cement, Aradel Holdings, First HoldCo, MTN Nigeria Communications, Nestlé Nigeria, Nigerian Breweries, Presco and Stanbic IBTC Holdings.

FTSE Russell classified the companies as ‘newly eligible’ large-cap constituents, following the planned reclassification of Nigeria’s equities market.

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The development comes ahead of Nigeria’s return to the frontier market classification, scheduled to take effect at the opening of trading on September 21, 2026.

FTSE Russell had announced the reclassification in April but subsequently subjected the decision to further review after Nigeria moved from a T+2 to T+1 settlement cycle on June 1.

The index provider had raised concerns that the shorter settlement period could effectively require international investors to prefund transactions, potentially creating operational and funding challenges.

However, following consultations with Nigerian market regulators, market operators and international investors, FTSE Russell said the reclassification would proceed.

The index provider said it had not identified any material settlement, operational or funding difficulties since the implementation of the T+1 settlement regime.

The reclassification is expected to improve Nigeria’s visibility among global frontier-market investors and could provide a wider benchmark universe for international funds tracking FTSE Russell indexes.

FTSE Russell’s frontier index series covers large-, mid- and small-cap companies in qualifying frontier markets and is used by investors as a benchmark for portfolio allocation and by asset managers in constructing index-tracking investment products.