Nigerian securities dealers are mounting a coordinated defense of the country's transition to a T+1 settlement cycle, directly contesting the grounds used by FTSE Russell to pause Nigeria's upgrade to frontier market status.
The pushback intensifies as the global index provider maintains that the operational shift introduces risks that warrant further review before the reclassification can proceed.
The dispute centers on the Nigerian Exchange's recent implementation of the faster settlement timeline.
While FTSE Russell cited the change as a factor in suspending the upgrade, local market participants argue the move enhances market efficiency and aligns with global best practices.
Dealers contend that the index provider's concerns overlook the robustness of the new infrastructure and the potential for increased foreign investment liquidity.
This standoff represents a critical juncture for Nigeria's capital markets.