The Securities and Exchange Commission (SEC) has announced plans to shorten Nigeria’s capital market settlement cycle from T+3 to T+2, a move expected to enhance market efficiency, minimize systemic risks, and strengthen investor confidence. The transition, according to the SEC, will bring Nigeria’s financial market in line with global best practices and improve its attractiveness to both local and international investors.
Speaking at the Trade Associations Roundtable themed “Ensuring Stakeholder Readiness for T+2 Settlement” in Abuja on Wednesday, SEC Director-General Emomotimi Agama described the change as a major milestone in the modernization of Nigeria’s capital market infrastructure. Agama explained that a shorter settlement cycle would reduce counterparty risks, lower market exposure, and make transactions faster and more secure. “A shorter settlement cycle is a hallmark of a mature, dynamic, and competitive market,” he said.
Agama emphasized that the move to T+2 will not only make the market more resilient but also increase liquidity by allowing investors to access and reinvest their funds sooner. “It aligns our market with international best practices, enhances our attractiveness to foreign investors, and reinforces Nigeria’s position as a key player in the global financial arena,” he noted, adding that quicker settlements strengthen the foundation of market trust and stability.
The SEC boss also pointed out that several advanced economies have already adopted T+1 settlements, underscoring the need for Nigeria to remain competitive and globally relevant. He urged all market participants — including brokers, custodians, clearing houses, and investors — to ensure readiness by upgrading their systems, recalibrating operations, and streamlining settlement processes. “Your readiness and that of your members is the single most important determinant of our success,” Agama told stakeholders.
Agama further assured that the SEC would collaborate closely with trade associations, the Nigerian Exchange Limited (NGX), and the Central Securities Clearing System (CSCS) to ensure a smooth transition. He said the Commission would also intensify investor education campaigns to promote understanding of the new settlement structure. “The move to T+2 is a necessary leap forward for the Nigerian capital market — a testament to our shared ambition to build an efficient, resilient, and globally competitive market,” he concluded.
source: punch