By Aduragbemi Omiyale

The planned reclassification of Nigeria’s Frontier Market status by FTSE Russell has suffered a major setback.

This is because the global index provider is reviewing this after the country transitioned into a T+1 settlement cycle on June 1, 2026, from a T+2 settlement cycle.

Last month, Nigeria became the first market in Africa to implement the shortened settlement framework designed to enhance efficiency, reduce risk, and improve global competitiveness.

The move, according to the Securities and Exchange Commission (SEC), was to align the ecosystem with global best practices, where shorter settlement cycles are increasingly being adopted to improve post-trade efficiency, reduce counterparty risk, and strengthen investor confidence, reaffirming regulators’ commitment to continued modernisation of market systems and processes.

The Director General of SEC, Mr Emomotimi Agama, had enthused that, “The era of T+1 has begun. In just six months, Nigeria has successfully progressed from T+2 to T+1 settlement, joining a growing group of markets embracing faster and more efficient settlement cycles.

“This achievement signals that Nigeria is prepared to undertake the structural reforms required to compete for global capital.”

However, FTSE Russell seems not to buy into this development, as it raised concerns about it, pointing out that the shorter settlement period could effectively make the Nigerian market a prefunded market for international institutional investors, requiring them to provide funds before trades are completed.

It argued that compulsory pre-funding is considered a disadvantage under its Settlement Cycle (Delivery versus Payment) criterion, one of the five key Quality of Markets standards that countries must satisfy to qualify for Frontier Market status under its Equity Country Classification framework.

The platform said it would conduct a further assessment before taking a final decision on the proposed reclassification and would provide an update by the end of August 2026.

Nigeria was upgraded from Unclassified to Frontier Market status in March 2026, with the change initially scheduled to take effect in September.

By Dipo Olowookere

The Nigerian stock market rebounded on Tuesday by 0.45 per cent after consecutive days of shedding weight as a result of intense selling pressure, triggered by profit-taking and regulatory changes like the adoption of the T+1 settlement cycle and a change to the price movement rules.

Yesterday, the Nigerian Exchange (NGX) Limited closed higher despite three of the five key sectors closing in the red.

The industrial goods and the energy indices gained 0.01 per cent each, while the banking index slumped by 1.62 per cent, the insurance counter lost 0.38 per cent, and the consumer goods sector declined by 0.03 per cent.

At the close of business, the All-Share Index (ASI) was raised by 1,052.86 points to 229,419.18 points from 228,366.32 points, and the market capitalisation expanded by N676 billion to N147.218 trillion from N146.542 trillion.

Customs Street recorded 19 price gainers and 32 price losers during the trading day, indicating a negative market breadth index and weak investor sentiment.

Prestige Assurance improved by 10.00 per cent to N1.54, Airtel Africa also gained 10.00 per cent to close at N4,794.60, Cutix appreciated by 9.70 per cent to trade at N2.94, Regency Alliance grew by 9.09 per cent to 84 Kobo, and FCMB climbed by 7.81 per cent to N10.35.

On the flip side, Custodian Investment lost 9.98 per cent to finish at N65.85, RT Briscoe dropped 9.95 per cent to quote at N9.95, PZ Cussons also depreciated by 9.95 per cent to N85.50, UPDC slipped by 9.86 per cent to N3.20, and Honeywell Flour retreated by 9.78 per cent to N28.12.

A total of 966.7 million equities worth N40.0 billion exchanged hands in 49,579 deals on Tuesday versus the 998.5 million equities valued at N43.7 billion traded in 61,813 deals on Monday, showing a drop in the trading volume, value, and number of deals by 2.99 per cent, 8.47 per cent, and 19.79 per cent, respectively.

The busiest stock for the session was Linkage Assurance, which sold 96.0 million units for N155.1 million, FCMB exchanged 93.8 million units valued at N956.0 million, Japaul traded 81.8 million units worth N228.8 million, Morison Industries transacted 79.2 million units for N791.7 million, and Neimeth sold 71.6 million units valued at N552.1 million.

By Aduragbemi Omiyale

Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, has proposed the establishment of a specialised Commercial Dispute Resolution Tribunal to fast-track the resolution of business disputes.

Speaking at the inaugural lecture as a Fellow of the Capital Market Academics of Nigeria (CMAN) in Abuja, Mr Oyedele argued that faster justice delivery is critical to attracting long-term investment and deepening Nigeria’s capital market.

At the event themed The Nigerian Capital Market as a Catalyst for Equitable and Inclusive Growth, the Minister noted that delays in resolving commercial disputes remain one of the biggest obstacles to investment, noting that cases currently take an average of 15 years to progress through the High Court, Court of Appeal and Supreme Court.

He pointed out that such prolonged litigation creates uncertainty, discourages investors and significantly increases the cost of doing business in Nigeria.

To address the challenge, the Minister proposed a dedicated Commercial Dispute Resolution Tribunal staffed by judges and arbitrators with specialised expertise in commercial, financial and capital market matters.

Mr Oyedele said the tribunal should operate with digital case management systems and mandatory timelines to ensure swift resolution of disputes involving businesses, suppliers, joint venture partners and other commercial entities.

He explained that the proposed tribunal would complement existing investment protection mechanisms by providing a more efficient avenue for resolving commercial disagreements that often delay investments and weaken investor confidence.

The Minister stressed that virtually every financial instrument—including bonds, syndicated loans, private placements and structured notes—is founded on enforceable contracts, making speedy dispute resolution essential for the growth of the capital market.

Beyond judicial reforms, he urged Nigerians to reconsider their long-held perception of public borrowing, insisting that debt should be judged by what it finances rather than by its size.

He argued that borrowing is not inherently harmful and should instead be viewed as a financial tool capable of supporting economic growth when channelled into productive investments.

“The relevant question is never simply how much debt there is. It is always debt for what, at what cost, against what return and repayable on what terms,” he stated, criticising the tendency among analysts and commentators to condemn every instance of government borrowing without examining whether the funds are being invested in projects capable of generating sustainable economic returns.

According to him, governments and businesses that borrow to finance productive assets yielding returns above the cost of capital are making rational financial decisions, adding that refusing to borrow under such conditions could amount to foregoing valuable development opportunities.

The Minister also challenged the mindset of many Nigerian entrepreneurs who resist bringing in external investors in order to retain full ownership of their businesses, noting that owning 100 per cent of a small enterprise often creates less value than holding a substantial stake in a much larger and well-capitalised company.

The Minister further outlined what he described as the “seven laws of capital attraction,” emphasising that investors are primarily attracted by trust, policy consistency, strong institutions and the rule of law rather than generous tax incentives.

He said capital seeks predictable returns instead of merely pursuing the highest returns, warning that countries with unstable policies often lose investment to jurisdictions offering lower but more reliable returns.

“Capital hates uncertainty more than taxation,” he said, attributing investor hesitation to policy reversals, regulatory inconsistencies, foreign exchange uncertainty and weak contract enforcement.

According to him, investors commit long-term capital to countries with credible institutions rather than to individual political leaders.

He identified an independent judiciary, a credible central bank and an efficient public bureaucracy as critical pillars for attracting sustainable investment.

The Minister also urged government officials, professionals and the media to improve communication around economic reforms, arguing that Nigeria often pays what he described as a “perception premium” because positive policy changes are poorly communicated to investors.

He maintained that attracting long-term capital requires not only sound economic policies but also stronger institutions, policy consistency, efficient justice delivery and a shift in public attitudes towards debt and private investment.

Meanwhile, the Director-General of the Securities and Exchange Commission (SEC), Mr Emomotimi Agama, called for stronger collaboration between regulators and academics, saying research-driven policymaking is essential for strengthening Nigeria’s capital market and promoting inclusive economic growth.

Speaking during the opening of the conference, Mr Agama described the Capital Market Academics of Nigeria as an important bridge between academic research and financial market regulation.

“I have long believed that good regulation begins with good thinking. The policies we make at SEC are only ever as strong as the evidence and the ideas that inform them,” he said.

According to him, research generated through academic conferences, journals and peer-reviewed studies provides the foundation for evidence-based regulation capable of responding to the evolving needs of Nigeria’s financial markets.

He said the agency regards academics as strategic partners whose ideas can shape policies that strengthen investor confidence and support market development, adding that Nigeria’s capital market is undergoing major reforms following the enactment of the Investments and Securities Act, 2025, and the implementation of a new 10-year Capital Market Master Plan.

He said the reforms require rigorous research, constructive scrutiny and honest debate to ensure that regulatory policies remain responsive to emerging realities and aligned with global best practices.

The SEC chief also commended CMAN for choosing a conference theme focused on equitable and inclusive growth, describing it as timely and relevant to Nigeria’s economic development agenda.

He urged participants to ensure that their deliberations produce practical recommendations capable of influencing policymaking and improving market operations.

“The commission’s door is open to evidence, to challenge and to fresh ideas, wherever they may lead. The finest measure of these two days will not be the sessions we hold, but the policies and the practices they go on to shape,” Mr Agama said.

He reaffirmed the organisation’s commitment to working closely with the academic community to advance knowledge, strengthen regulation and support the sustainable development of Nigeria’s capital market.

On his part, the president of the Capital Market Academics of Nigeria (CMAN), Prof. Uche Uwaleke, has called for stronger collaboration between academia and the financial services industry, saying closer partnerships are essential to deepening Nigeria’s financial markets and accelerating economic growth.

Mr Uwaleke said Nigeria possesses abundant intellectual capacity within its universities and extensive practical expertise across its financial institutions, but lacks a structured framework to connect both sectors for national development.

According to him, countries with resilient financial systems have succeeded by fostering continuous collaboration among universities, regulators, government agencies and industry players.

He described CMAN as Nigeria’s leading financial markets think tank, established to ensure that academic research goes beyond scholarly publications to provide practical solutions to the country’s economic challenges.

To bridge the gap between academia and industry, Mr Uwaleke urged the Federal Ministry of Education and the National Universities Commission (NUC) to recognise industry experience alongside academic publications in the appointment and promotion of lecturers in professionally oriented disciplines such as Banking, Finance, Insurance, Accounting and Capital Market Studies.

He also recommended that universities deliberately recruit accomplished retired bankers, investment professionals and capital market practitioners as adjunct lecturers to enrich teaching, strengthen curriculum relevance and better prepare graduates for the workplace.

According to him, the NUC should reinforce the initiative by awarding accreditation points to academic programmes that successfully integrate experienced industry practitioners into their faculties.

The CMAN president further called on financial sector regulators, including the Central Bank of Nigeria, Securities and Exchange Commission, National Insurance Commission, National Pension Commission and the Nigeria Deposit Insurance Corporation, to institutionalise structured sabbatical and research fellowship opportunities for qualified academics.

He said such programmes would enable scholars to undertake policy-oriented research while giving regulators access to independent expertise capable of improving policy formulation and regulatory effectiveness.

Mr Uwaleke also proposed the establishment of a Financial Markets Research Partnership to be championed by the Federal Ministry of Finance and the Ministry of National Planning.

He said the initiative should bring together regulators, universities and industry players to commission research on critical national priorities, including capital market development, infrastructure finance, pension reforms, insurance penetration, financial inclusion and sustainable finance.

In addition, he appealed to the National Assembly to support policies that encourage collaboration between universities and industry through incentives for financial institutions investing in research partnerships and university-based financial market research centres.

Mr Uwaleke commended SEC, the Bank of Industry, Cowry Asset Management Limited and the Chartered Institute of Stockbrokers for already providing sabbatical opportunities to CMAN members.

He reaffirmed the association’s commitment to serving as a bridge between academia, government, regulators and industry through independent research, policy advice and intellectual support aimed at strengthening Nigeria’s financial system and driving sustainable economic transformation.