Nigeria will be restored to an index that measures equities in frontier markets, three years after it was delisted over concerns about the ability to repatriate earnings.
FTSE Russell, a subsidiary of the London Stock Exchange Group, will upgrade its designation of Nigeria next month to “frontier market” from “unclassified” — a move that is likely to attract new portfolio investment.
A foreign exchange crisis between 2022 and 2023 in Nigeria constrained the ability of several international companies to take their money out, fueling an exodus of entire businesses and capital. Nigeria’s finance minister said government “improvements” to foreign exchange liquidity prompted the return to the FTSE Russell index.
Credit ratings agency Moody’s also gave Nigeria an upgrade last week, revising its outlook to “positive” from “stable” on the back of strong foreign exchange reserves.