Nigeria Eyes MSCI Emerging Market Status

By Adedapo Adesanya

Nigeria is now pursuing inclusion in MSCI’s Emerging Markets classification following its return to FTSE Russell’s Frontier Market category.

Mr Taiwo Oyedele, Minister of Finance and Coordinating Minister for the Economy, disclosed this on Monday at the National Capital Market Conference 2026 in Abuja, where the Securities and Exchange Commission (SEC) unveiled the Nigerian Capital Market Masterplan 2.0.

Mr Oyedele said the government was engaging MSCI, a global index provider, to address outstanding issues affecting Nigeria’s classification, adding that the country’s ambition extended beyond regaining Frontier Market status.

“We’re working with MSCI. MSCI is the real deal for the capital markets,” he said.

The minister said global index providers played an important role in shaping international investment decisions because institutional investors often use their benchmarks to guide the allocation of funds across markets.

According to him, the government had engaged MSCI, including during a recent meeting in Bangkok, as part of efforts to improve Nigeria’s standing in international investment benchmarks.

He said MSCI had identified a limited number of outstanding issues that could potentially be resolved within months, although he did not provide a definitive timeline for reclassification.

Mr Oyedele identified foreign exchange market functionality and investors’ ability to move funds into and out of Nigeria as important considerations in restoring international investor confidence.

Nigeria was reclassified by MSCI from Frontier Market to Standalone Market status in October 2023 following persistent foreign exchange liquidity challenges and difficulties faced by foreign investors seeking to execute transactions and repatriate proceeds.

The decision reduced Nigeria’s visibility within MSCI’s Frontier Market benchmark universe, affecting the country’s position among markets tracked by international investors.

Nigeria has since made progress in restoring its presence in global investment benchmarks. FTSE Russell’s return of the country to its Frontier Market classification took effect on September 21, 2026, following improvements in foreign exchange liquidity, capital repatriation and market accessibility.

The reclassification included Nigerian companies across large-cap, mid-cap and small-cap categories, restoring their visibility within FTSE Russell’s Frontier Index Series.

However, Nigeria’s return to FTSE Russell’s Frontier Market category does not automatically change its status under MSCI, as the two index providers operate separate classification systems with distinct eligibility requirements.

Mr Oyedele also cited Nigeria’s inclusion in a J.P. Morgan emerging-market government bond benchmark as progress in improving the country’s international investment profile.

According to him, Nigerian government bonds have been included in the Government Bond Index–Emerging Markets Edge, with a weighting of 7.4 per cent.

The inclusion is separate from Nigeria’s pursuit of renewed participation in J.P. Morgan’s flagship Government Bond Index–Emerging Markets Global Diversified.

The government’s broader objective is to use improved international market recognition to attract investment, strengthen liquidity and expand financing opportunities for businesses and infrastructure.

Nigeria’s pursuit of MSCI Emerging Markets status will depend on meeting the index provider’s requirements and sustaining improvements in foreign exchange operations, market accessibility and investor confidence.