The Alliance for Economic Research and Ethics (AERE) Ltd/Gte has commended the inclusion of Nigeria on the FTSE Russell Watch List for potential reclassification as a Frontier Market, describing the development as a landmark moment in Nigeria’s economic recovery and global reintegration.
In a statement signed by the Chairman of AERE, the 22nd President of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), and Immediate Past Chairman of the Organised Private Sector of Nigeria, Hon. Dele Kelvin Oye, the organisation said the move represents “a significant step toward rebuilding Nigeria’s credibility in the global capital markets.”
“Nigeria’s inclusion on the FTSE Russell Watch List is a vote of confidence in the ongoing fiscal and monetary reforms of the Federal Government and the Central Bank of Nigeria (CBN). It signals a renewed trust in our economy’s direction, but it must be sustained through discipline and consistency,” Oye said.
READ ALSO: 98% of Nigerian Workers to be exempted from PAYE under new Tax Law — Oyedele
He attributed this positive development to a combination of wide-ranging policy measures undertaken by the Bola Ahmed Tinubu-led Federal Government, which include: “Reforms in the foreign exchange market: The Central Bank of Nigeria (CBN) has implemented reforms to improve foreign exchange transparency and liquidity, including the liberalisation of the naira exchange rate.”
On the rationalisation of fuel subsidies, Oye said, “The government has rationalised fuel subsidies, which has helped to reduce the financial burden on the government and improve overall fiscal discipline.”
He noted other policy measures undertaken by the federal government include “measures to improve the ease of doing business”: the government has implemented measures to improve the ease of doing business, including reforms in the foreign exchange market, fiscal policy, and ease of doing business.
According to Oye, the implications of Nigeria’s inclusion on the watch list are far-reaching and could usher in a new phase of economic growth and investor engagement.
He added that the “increased visibility and attractiveness to global investors: Nigeria’s inclusion on the watch list could restore its visibility to global institutional investors and attract hundreds of millions of dollars in passive inflows from funds benchmarked to FTSE indices.”
On improved market liquidity and transparency, Oye said, “The reclassification could lead to increased market liquidity and transparency, as well as improved corporate governance and regulatory standards.”
He continued, on “Enhanced credibility and reputation: Nigeria’s reclassification as a frontier market could enhance the country’s credibility and reputation in the global capital markets, making it more attractive to foreign investors.”
On the country’s potential for increased foreign investment, the Immediate Past Chairman of the Organised Private Sector of Nigeria noted, “If Nigeria is reinstated as a frontier market, its equities would once again be eligible for inclusion in the FTSE Frontier Market Index Series, potentially attracting renewed foreign portfolio inflows into the country.”
READ ALSO: FG’s Shea Nut Export Ban: Experts Seek Urgent Clarity on Policy Implementation
He warned that FTSE Russell’s confirmation of Nigeria’s reinstatement is not automatic, noting that “FTSE Russell has emphasised that reinstatement is not automatic and will depend on continued FX stability, predictable repatriation timelines, and confirmation from investors that reforms are sustainable.”
Reaffirming AERE’s commitment to promoting ethical and evidence-based economic reforms, Oye said the organisation will continue to advocate for transparency, accountability, and consistency in policy implementation to strengthen investor confidence and drive sustainable growth.
“This recognition is a milestone, but the real achievement will come when Nigeria sustains these reforms, achieves full reinstatement, and cements its place as a credible and reform-driven economy in the global investment community,” Oye concluded.
Sunday Michael Ogwu is a Nigerian journalist and editor of Pinnacle Daily. He is known for his work in business and economic reporting. He has held editorial roles in prominent Nigerian media outlets, where he has focused on economic policy, financial markets, and developmental issues affecting Nigeria and Africa more broadly.