Nigeria was not found among 28 countries listed on the index frontier markets, which harbours other smaller African countries’ securities.
It was discovered from the Global investment Service Firm that MSCI Inc. has finally removed Nigeria from its frontier market indexes category.
It had opened a consultation proposal to downgrade Nigeria Indexes to standalone status after previous warnings to investors about foreign currency scarcity in Africa’s largest economy.
As Confirmed on the Global investment service Website, it was confirmed that Nigeria security has been removed. MSCI planned to delete Nigerian security from frontier markets indexes in February 29, 2024, despite ongoing forex market reforms.
The leading provider of critical decision support tools and services for the global investment community, announced the results of the February 2024 Index Review for the MSCI Equity Indexes.
“In light of currently observed market accessibility issues, MSCI will not implement changes as part of this Index Review for any securities classified in Bangladesh, Egypt, or Kenya for the MSCI Bangladesh, MSCI Egypt, and MSCI Kenya Indexes or impacted composite indexes”.
Due to low liquidity in the Nigerian foreign exchange market, the repatriation of funds from investment in the market remains extremely difficult for foreign investors. MSCI said that since March 2020, accessibility issues have persisted in the Nigerian equity market.
As a result, market participants have continuously expressed concerns related to the investability and replicability of the MSCI Nigeria Indexes, according to the statement.
It said there will be nine additions to and eleven deletions from the MSCI Frontier Markets Index.