FTSE Russell has blocked Nigeria's proposed upgrade to a new settlement cycle, effectively halting the country's reclassification to Frontier Market status.
The global index provider cited the Nigerian Exchange's recent shift to a T+1 settlement cycle as the primary reason for placing the upgrade under further review, according to reports from Premium Times.
The decision marks a significant setback for Nigerian equities, which had been trading on the prospect of inclusion in the FTSE Frontier Markets Index.
Such an upgrade would have unlocked substantial inflows from passive and active funds mandated to track frontier market benchmarks.
By blocking the settlement cycle change, FTSE Russell signals that the current infrastructure does not yet meet its criteria for efficient trade settlement and investor protection.
This development follows a period of heightened scrutiny on Nigeria's market infrastructure.