Emomotimi Agama, director general of the Securities and Exchange Commission, has urged Nigeria to maintain unwavering policy consistency and strengthen operational resilience across its financial sector. The push comes after S&P Dow Jones Indices placed the country on its 2027 Watchlist for potential reclassification from a Standalone to a Frontier Market designation.
In a strategy document titled "Nigeria's Path to Index Reclassification: A Unified Strategy on Policy Consistency and Operational Resilience," Agama described the S&P DJI decision as the nation's best chance in a decade to rebuild global investor trust. FTSE Russell is also conducting a parallel Frontier Market review that could unlock substantial foreign portfolio inflows.
Agama stressed that the country has moved past the reform design phase. "The reform programme is complete; the evidence programme now begins," he said, emphasising that Nigeria must now prove it can implement existing policies consistently rather than introducing fresh measures.
S&P DJI has acknowledged Nigeria's stronger regulatory environment, better transparency standards, tighter enforcement and improved market integrity, Agama noted. However, the index provider will judge the nation's progress based on consistent policy implementation and reliable market operations through the remainder of 2026.
Nigeria's successful shift to a T+1 settlement cycle in June 2026 triggered FTSE Russell's ongoing assessment, Agama explained. The transition has positioned the country ahead of many frontier markets and several emerging economies in settlement efficiency.
Though the two index providers use different methodologies, both are essentially examining foreign exchange repatriation, settlement integrity, regulatory consistency and infrastructure reliability, according to Agama. He warned that policy reversals, discretionary regulatory moves, retroactive directives or foreign exchange restrictions could damage Nigeria's Frontier Market prospects.
Agama identified five essential pillars for policy consistency: durability of the foreign exchange regime, uniform regulatory enforcement, avoidance of retroactive policy changes, coordination among fiscal, monetary and regulatory authorities, and predictable judicial protection of investor rights. On the operational side, Nigeria must sustain performance under its new settlement framework, execute efficient foreign exchange repatriation, maintain deep and liquid currency markets, operate resilient infrastructure and ensure orderly trading during volatile periods.
The SEC has proposed establishing an Index Reclassification Steering Committee to oversee the process. The committee would include the Commission, the Central Bank of Nigeria, Federal Ministry of Finance, Federal Inland Revenue Service, Nigerian Exchange, Central Securities Clearing System and FMDQ.
The Commission also plans to produce a quarterly Reclassification Evidence Pack containing certified data on settlement performance and foreign exchange repatriation metrics to demonstrate progress.
