Nigeria defends T+1 settlement policy as FTSE Russell threatens market status review
FTSE Russell, owned by the London Stock Exchange, has threatened to review Nigeria's frontier market status over the SEC's new T+1 settlement policy requiring trades to settle in one day instead of two. The policy aims to boost market efficiency and attract more investors.
This matters because FTSE's threat could affect Nigeria's market perception and foreign investment flows, while the T+1 reform threatens the business models of custodians (who profit from 2-day fund floats) and registrars (who earn from unclaimed dividends). Nigeria's strong B+ S&P rating, record forex reserves, and GDP growth suggest strong fundamentals despite the challenge.
FTSE's hypocrisy is highlighted by the LSE losing over 800 listed companies since 2015, while Johannesburg and Egypt operate T+1 without similar objections. With Nigeria's market at $200 billion and reforms progressing, should we call FTSE Russell's bluff and proceed with T+1 settlement to build a truly vibrant, transparent market that attracts quality investment?