Nigeria’s FTSE Russell return could trigger fresh foreign inflows — Griffin Capital CEO

Nigeria’s planned return to the FTSE Russell Index by September 2026 could trigger a fresh wave of foreign portfolio investments into the country’s equities market, the Group Chief Executive Officer of Griffin Capital Group, Babatunde Obaniyi, has said. Obaniyi stated this during a press briefing to announce the official market entry of Griffin Capital as a fully integrated financial services group. According to him, recent reforms in Nigeria’s foreign exchange market and improving macroeconomic indicators are restoring investor confidence after years of capital flight linked to FX illiquidity and repatriation challenges. What the Group CEO is saying Obaniyi said the Nigerian equities market has already witnessed a significant rally in 2026, recording gains of more than 60% year to date as of May 20. The Griffin Capital CEO said the company intends to leverage the improving market environment to deepen participation in Nigeria’s debt and equity capital markets. According to him, Nigeria’s earlier removal from the global index was largely driven by difficulties faced by foreign portfolio investors in accessing and repatriating foreign exchange. “Due to the liquidity issues we had with FX, where the FPIs couldn’t take out their capital when they made money, we were taken out of the FTSE Russell Index, ” Obaniyi stated. He added that the crisis triggered an estimated outflow of between $10 billion and $15 billion from the Nigerian capital market as foreign investors exited the country. “So, now the good news is that we strongly believe that the reform of President Bola Tinubu is working. Most of the structural issues have been addressed. “If you look at the foreign reserves, we are at record of about $49 billion as of today. And that gives us an import cover of about 10 months. So, all these signals confidence to the FPIs that wants to bring in capital. “And by the time we are added back to the FTSE Russell index by September the 21st, 2026, we still expect further rally in the market,” he said. More insights Obaniyi said the launch of Griffin Capital reflects a deliberate response to the evolving demands of Nigeria’s financial ecosystem, where the need for disciplined capital deployment, stronger Corporate Governance frameworks, and deeper market liquidity continues to shape the next phase of growth. Structured as a multi-business financial services group, he said Griffin Capital is designed to operate across the full spectrum of capital formation, from origination through innovatively structuring complex financial transactions in a simplified manner; to execution, distribution, and investment management. Also speaking, the Chairman of the Group, Musa Bello, said financial institutions play a critical role in shaping economic outcomes, particularly in emerging markets where capital must be deployed with both precision and purpose. “As Nigeria continues to deepen its capital markets and expand private sector participation, institutions with the capacity to structure, mobilize, and manage capital effectively will be essential. “Our focus is not only on participating in this evolution, but on contributing to it in a meaningful and sustainable way,” he said. What you should know Earlier in April, FTSE Russell announced the reclassification of Nigeria from “Unclassified” to “Frontier market status,” ending a more than two-year hiatus that saw the country excluded from its indices. The move signals renewed investor confidence and is expected to open Nigeria’s stock market to increased foreign capital inflows, further boosting a market that has already gained over 29% this year. FTSE Russell said the decision followed recommendations from its advisory bodies, reflecting improved market conditions. The reclassification is expected to take effect from September 2026.