SEC Introduces T+1 Settlement For Faster Transaction 

By Oluwakemi Kindness

Nigeria’s Securities and Exchange Commission (SEC) has outlined fresh measures to modernise the capital market.

This include a shift to a T+1 settlement cycle aimed at reducing risk and speeding up transactions.

Speaking at the 2025 second Capital Market Committee meeting, SEC Director-General Dr Emomotimi Agama said the long-term goal is to achieve same-day settlement (T+0), as part of wider reforms to boost efficiency and investor confidence.

Nigeria Moves Closer to Global Settlement Standards

Agama said the recent migration from T+3 to T+2, implemented on 28 November, is a major step toward aligning Nigeria with global practice.

He said faster settlement would “improve liquidity, reduce counterparty exposure and support capital reinvestment”.

The new cycle covers the Nigerian Exchange, NASD OTC and Lagos Commodities and Futures Exchange.

Improved Ratings Lift Investor Sentiment

The SEC said market confidence has strengthened following Nigeria’s upgraded sovereign rating and its removal from the Financial Action Task Force grey list.

Inflation also eased to 16.05% in October, its lowest level since March 2025.

Capital Raising Accelerates

Between April and October, the Commission approved major debt and equity programmes, including a N500bn Climate Funding SPV and a N200bn Elektron Finance bond.

Commercial paper issuance stayed strong, with more than N753bn raised by companies in manufacturing, energy and agriculture.

Record Market Drop in November

Agama acknowledged a sharp downturn in November, when the Nigerian Exchange recorded its steepest monthly decline.

Market capitalisation fell by N6.54tn and the All-Share Index dropped nearly 7%.

He blamed profit-taking linked to the proposed 30% capital gains tax, weakness in banking stocks and broader economic uncertainty.

The market has since stabilised after government clarification on fiscal policy.

Financial Literacy Push

The SEC is expanding capital market education in secondary schools and universities.

A recent partnership with Nnamdi Azikiwe University focused on investment opportunities for SMEs.

Non-Interest Finance Gains Momentum

Agama said the Commission is working to deepen Islamic finance following engagements with the Bank of Ghana.

Nigeria’s sovereign Sukuk programme has grown to N1.4tn, and a Municipal Bond and Sukuk Summit is planned for early 2026.

Commodities and Derivatives Development

The SEC is partnering with regulators and commodity exchanges to improve standards, expand insurance coverage and support the mining sector.

It is also deploying real-time surveillance tools for derivatives and reviewing key rules around central clearing and online forex.

Digital Transformation of Supervision

Agama said the Commission’s Digital Transformation Portal now allows operators to file applications and monitor approvals electronically.

Automation of quarterly and yearly returns is underway, and cybersecurity capacity is being upgraded.

A technology survey showed increased adoption of cloud services, though use of AI and big data remains below 10%.

More than 70% of operators plan to adopt AI, blockchain and regulatory-tech within three years.

Corporate Governance Update

A unified corporate governance reporting template will soon be introduced to reduce compliance costs and harmonise disclosures across regulatory frameworks.

Key Dates

1–31 January 2026: Renewal of registration for capital market operators

Q1 2026: Start of electronic submission of registration applications

Agama said the reforms are aimed at creating a more resilient and transparent market

“A strong capital market is not built in a day; it is shaped by vision, collaboration and resilience,” he said.