A youth advocacy group, The City Boy Movement, has described Nigeria’s return to FTSE Russell’s Frontier Market status as a validation of President Bola Tinubu’s economic reforms and progress in strengthening investor confidence.

CBM said the development represented a significant vote of confidence in the Nigerian economy and could improve the country’s visibility among global investors seeking opportunities across frontier markets.

The director-general of CBM, Francis Shoga, stated this in a statement by the organisation’s deputy director-general, media, communication and public affairs, O’tega Ogra, on Thursday in Abuja.

FTSE Russell is proceeding with Nigeria’s reclassification from “Unclassified” to “Frontier Market” status, effective September 21, following improvements in foreign exchange market accessibility and capital repatriation.

Nigeria was removed from FTSE Russell’s Frontier Market indices in September 2023 over difficulties accessing foreign exchange and repatriating capital, which affected international investors operating in the country.

Mr Shoga said the latest development demonstrated measurable progress in the foreign exchange market under the Tinubu administration, particularly in addressing challenges previously faced by international investors.

“When our grand patron, President Bola Tinubu, took office, Nigeria’s foreign exchange market was under severe pressure, with billions of dollars in investor funds trapped in the country.

“Three years on, FTSE Russell reports that FX queues have cleared, and international institutional investors no longer face significant delays in repatriating their capital.

“Nigeria is rejoining the global investment benchmark after being removed. That is measurable progress, independently assessed by one of the world’s leading index providers,” Mr Shoga said.

He commended the Securities and Exchange Commission (SEC), Central Bank of Nigeria (CBN) and other capital market stakeholders for their efforts toward strengthening investor confidence and improving market conditions.

Mr Shoga, however, said more needed to be done to ensure that economic gains translated into improved living standards and greater opportunities for Nigerians, particularly young people.

“There is still work to be done, particularly in ensuring that these gains translate into better living standards for Nigerians.

“But we should still acknowledge progress when independent global institutions recognise it,” he said.

He urged subnational governments to deepen investments in human capital and social development, particularly in education, skills development and other areas affecting Nigeria’s youthful population.

“On behalf of the City Boy Movement, we commend President Bola Tinubu for staying the course, appreciate the SEC, CBN and capital market stakeholders for their contributions, and congratulate Nigerians on this important milestone,” Mr Shoga said.

FTSE Russell’s reclassification is expected to enhance Nigeria’s visibility among global frontier-market investors and potentially support increased foreign portfolio investment.

(NAN)