Aradel, Dangote Cement, GTCO, MTN, Six Others Make FTSE Frontier Index

By Adedapo Adesanya

FTSE Russell has added 10 Nigerian companies to its FTSE Frontier Index Series as Nigeria prepares to return to Frontier Market status after a three-year absence from the global index classification.

The companies designated as “newly eligible” large-cap constituents are Aradel Holdings, Dangote Cement, First HoldCo, Guaranty Trust Holding Company (GTCO), MTN Nigeria Communications, Nestlé Nigeria, Nigerian Breweries, Presco, Stanbic IBTC Holdings and Zenith Bank.

The inclusion follows FTSE Russell’s decision to reclassify Nigeria from “Unclassified” to Frontier Market status, effective from the opening of trading on September 21, 2026.

FTSE Russell’s September review also identified 31 Nigerian stocks eligible for its Frontier Index Series, comprising large-, mid- and small-cap companies across sectors including banking, telecommunications, agriculture, consumer goods, healthcare, construction and insurance.

Nigeria was moved to “Unclassified” status in September 2023 amid concerns over foreign-exchange liquidity, market accessibility and difficulties faced by international investors in repatriating capital.

The country’s path back to the Frontier Market classification followed improvements in FX liquidity and capital-market infrastructure, including the transition from a T+2 to T+1 settlement cycle in June 2026.

The federal government had welcomed the reclassification, describing it as a validation of its economic reform programme and improvements in the foreign-exchange market.

The Federal Ministry of Finance said the development was a “meaningful signal” to global investors that Nigeria’s market is becoming more open and orderly.

Finance Minister and Coordinating Minister of the Economy, Mr Taiwo Oyedele, said the government considers the development a milestone rather than an endpoint, adding that its ambition is to build a deeper, more liquid and competitive capital market capable of achieving Emerging Market status in the near term.

He also pledged continued collaboration with regulators to deepen liquidity, expand market participation and strengthen investor protection.

The reclassification is expected to improve Nigeria’s visibility among international investors and potentially attract fresh foreign portfolio inflows, particularly into large and liquid Nigerian equities included in FTSE-linked benchmarks.

Analysts, however, noted that sustained foreign participation will depend on continued improvements in FX liquidity and the ease of capital repatriation.

The Nigerian Exchange (NGX) Group also welcomed the development, with its chief executive, Mr Temi Popoola, saying the return provides an opportunity to broaden international participation, deepen liquidity and mobilise more long-term capital for Nigerian businesses.

Dangote Cement has the largest market capitalisation among the 10 companies at about N17.45 trillion, followed by MTN Nigeria at N16.85 trillion and First HoldCo at N6.82 trillion. Collectively, the 10 companies were valued at about N67.14 trillion, according to the latest trading numbers.

The FTSE Frontier Index Series tracks large-, mid- and small-cap companies across eligible frontier markets and serves as a benchmark for investors and index-linked investment products.

The return of Nigerian stocks to the index is therefore expected to place the country’s listed companies back on the radar of global funds that track or benchmark against frontier-market indices.