Post by Augustine Chiagozie (@pabloexchange)

📊 Nigeria's fast stock settlement risks frontier market status

Nigeria's Exchange became Africa's first to adopt a T+1 settlement cycle — the fastest available — but the move has had an unintended consequence: foreign investors are now required to pre-fund trades, tying up capital before transactions are confirmed.

That pre-funding requirement has unnerved international investors, and Nigeria's hard-won FTSE Russell Frontier Market reclassification is now at risk as a result.

The tension highlights a broader challenge for Nigeria's capital markets: operational upgrades designed to modernise the bourse can simultaneously raise barriers for the global institutional investors the country is trying to attract.

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