The Chartered Institute of Stockbrokers (CIS) has expressed strong disapproval of FTSE Russell’s recent decision to postpone Nigeria's transition to Frontier Market status, framing it as a mere procedural delay. The deferral, which stems from concerns over the country’s settlement cycle, particularly the shift to a T+1 settlement system, has raised alarms among investors and market participants.
CIS President, Afolabi Olawale, stated, “This temporary review should not deter our commitment to enhancing market operations and attracting global investments.” The T+1 settlement cycle, which aims to streamline trading and improve liquidity, is viewed as crucial for aligning Nigeria's financial markets with international standards.
As Nigeria continues to navigate these challenges, stakeholders are urged to collaborate on solutions that can expedite the implementation of the T+1 cycle. The CIS remains optimistic that with concerted efforts, Nigeria can secure its rightful place in the global investment landscape. Moving forward, the focus will be on addressing the underlying issues that led to the deferment, ensuring that Nigeria is well-prepared for the anticipated reclassification and the benefits it promises.