MSCI says more time is needed to assess the effectiveness of Nigeria's foreign exchange reforms.

MSCI company stated that more time is needed to assess the impact of Nigeria's foreign exchange reforms, which means that this global index provider is not yet ready to restore the frontier market status of this West African country. In its annual market accessibility assessment, MSCI indicated that while adjustments in Nigeria's foreign exchange market have improved liquidity, "more time is needed to assess the impact of these changes." In February 2024, Nigeria was removed from the MSCI frontier market index due to ongoing liquidity challenges in the foreign exchange market, which caused many foreign investors to be unable to repatriate profits and dividends. This new assessment suggests that Nigeria is unlikely to be upgraded when MSCI announces the annual classification review results on June 24. Countries included in this index usually attract more foreign investors, leading to higher valuations. An upgrade could also promote capital inflows for this largest oil-producing country in Africa.