Nigeria restored to FTSE Russell Index
The country was dropped from the index, which measures equities in frontier markets, following concerns about the ability to repatriate earnings.
Nigeria has been reinstated to the FTSE Russell index, which measures equities in frontier markets, for the first time in three years. The index's subsidiary, FTSE Russell, based in London, will upgrade Nigeria's designation from "unclassified" to "frontier market" next month. This move is expected to attract new portfolio investment.
A foreign exchange crisis between 2022 and 2023 in Nigeria had previously constrained the ability of international companies to repatriate their earnings, leading to an exodus of businesses and capital. The government's improvements to foreign exchange liquidity, according to Nigeria's finance minister, prompted the return to the FTSE Russell index.
Additionally, credit ratings agency Moody's recently upgraded Nigeria's outlook to "positive" from "stable" due to strong foreign exchange reserves.
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