The Financial Times Stock Exchange (FTSE) on 11th of September 2023 released a statement degrading and reclassifying Nigeria’s Exchange from the Frontline market to the unclassified market. This will be active as of Monday, September 18, 2023. The FTSE Russel Group has claimed that Nigeria’s nagging Forex exchange has caused a holdback of institutional investors to restore their backlog of inaccessible capital.
The Nigerian Index status was deleted at zero value (0.0001NGN) from the five FTSE Russell equity indices and this has caused a backlash on Nigeria Forex exchange which has consequently forced the FTSE to downgrade and reclassification Nigeria from the Frontline to the Unclassified Market status.
The FTSE has reiterated that Nigeria’s recent forex reforms apply the “willing seller-willing buyer” policy at the I&E window in replace of the abandoned multiple exchange rates window which has resulted in very little and unexpected results. According to FTSE, It is stated that “Nigeria will be retained in the FTSE ASEA Pan Africa Index Series with the implementation of certain corporate events suspended until further notice”
Talking to THEWILL following the announcement, the professor of Capital Market at the Nasarawa State University Uche Uwaleke claimed that those who pushed Nigeria when the capabilities are not visible, into floating the Naira now turn to blame the country for the fall. He said, “They pushed us to float the naira when we were not ready only to turn around and slam us when the promise of increased forex inflows has yet to materialize. Now we have been left in the lurch”.