Nigeria’s capital market regulators have hailed the S&P Dow Jones’ Watchlist inclusion, saying it is a confirmation of the growing global confidence in Nigeria’s capital market, even as the Securities and Exchange Commission reinforced its commitment to policy consistency.

On Wednesday, July 8, S&P DJI added Nigeria to the Watchlist for potential upgrade from Standalone Market to Frontier Market status, citing improvements in regulatory transparency and market integrity.

In a spontaneous reaction to the development, SEC Director General, Dr. Emomotimi Agama, and the Nigerian Exchange Group, NGX Group, CEO, Temi Popoola, described S&P Dow Jones Indices’ decision to place Nigeria on its 2027 Country Classification Watchlist as a strong validation of the country’s ongoing capital market reforms.

Popoola said the announcement reflects growing international recognition of the collective work done by regulators, market infrastructure institutions, and operators.

While noting that reclassification is not yet fully confirmed, he stressed that the milestone validates the progress made so far and that the NGX Group will not slow its momentum.

“Our priority now is to deepen liquidity, improve market accessibility, and sustain investor confidence. NGX Group remains focused on positioning Nigeria as a preferred destination for both domestic and international capital.”

SEC DG, Dr. Emomotimi Agama, said “the Commission is actively building a forward-looking market structure, with faster settlement systems, tokenized securities, and deeper derivatives markets as core priorities.”

“Our focus remains on sustaining a fair, orderly, and transparent market that protects investors and supports long-term capital formation. We will keep working with exchanges, market infrastructure institutions, and operators to strengthen policy consistency and operational resilience across the board,” the SEC boss emphasised.

Popoola stressed that NGX Group will not slow down.

He said the priority now is to deepen liquidity, improve market accessibility, and sustain investor confidence, adding that SEC and NGX Group remain focused on positioning Nigeria as a preferred destination for both domestic and international capital.

A Watchlist inclusion serves as the critical first stage of a structured review process, with a final decision on the reclassification expected in 2027.

Market operators say that attaining Frontier Market status would provide a massive boost to Nigeria’s visibility among institutional investors.

According to the Vice President of Highcap Securities Limited, Mr. David Adonri, it would improve Nigeria’s eligibility for frontier market benchmark indices and specialised investment products.

It would also support stronger, more consistent foreign portfolio inflows, FPIs, into Nigerian equities.

It would further validate the long-term operational resilience of the local financial ecosystem.

According to S&P DJI, Nigeria’s regulatory environment has modernised significantly, pointing to improved transparency and enforcement.

However, the index provider cautioned that consistent policy implementation and operational resilience over the next several months will ultimately determine the final outcome of the 2027 review.

Nigeria’s recent market reforms have been driven jointly by a triad of institutions: the SEC, NGX Group, and the Central Securities Clearing System, CSCS.

Their combined efforts have focused on tightening investor protection, enhancing market transparency, upgrading post-trade infrastructure, and aligning local operations with global benchmarks.

Different index providers apply different methodologies when classifying markets.

Factors considered include liquidity, accessibility, regulatory effectiveness, and foreign investor access.

While Nigeria’s Watchlist placement is not an automatic upgrade, both NGX Group and the SEC see it as proof that reform efforts are being noticed internationally.

Both Agama and Popoola have pointed out that sustaining current momentum, rather than a single policy win, will ultimately determine whether Nigeria secures Frontier Market status in 2027.