Nigeria Advances T+1 Settlement and Market Reforms to Boost Investor Confidence
The Securities and Exchange Commission (SEC) of Nigeria has unveiled a comprehensive set of reforms aimed at strengthening market efficiency, enhancing investor confidence, and accelerating digital transformation in the country’s capital market. Speaking at the second Capital Market Committee (CMC) meeting of 2025, SEC Director-General Emomotimi Agama confirmed that Nigeria is moving toward a T+1 settlement cycle, following the recent shift from T+3 to T+2, aligning local practices with global standards.
Agama highlighted that shortening settlement cycles is expected to boost liquidity, reduce counterparty risks, and allow faster reinvestment of capital across the Nigerian Exchange, NASD OTC Securities Exchange, and Lagos Commodities and Futures Exchange. He also shared that Nigeria’s improved sovereign credit rating and removal from the FATF grey list, coupled with moderating inflation, have strengthened investor confidence, setting the stage for further capital inflows.
Between April and October, the market recorded strong capital-raising activity, including significant transactions such as the N500bn Climate Funding SPV and the N200bn Elektron Finance bond, reflecting rising investor interest in sustainable and infrastructure-focused finance. The commercial paper market also remained active, with over N753 billion issued across sectors like manufacturing, energy, and agriculture, underscoring confidence in the market’s regulatory framework despite a brief downturn in November due to profit-taking and policy uncertainties.
The SEC is also promoting financial inclusion and education, integrating capital market studies into secondary schools and collaborating with universities to leverage market opportunities for SMEs. Regionally, Nigeria is solidifying its leadership in non-interest finance through engagements with the Bank of Ghana and the upcoming Municipal Bond and Sukuk Summit. At home, the SEC is modernizing commodity and derivatives markets through updated regulations, risk management systems, and technology-driven oversight.
Agama emphasized that innovation and ethical practices must go hand-in-hand, highlighting the rollout of a Harmonized Corporate Governance Reporting Template and digital transformation initiatives that streamline regulatory compliance. Looking ahead, registration for capital market operators will be renewed electronically in early 2026, with the SEC reaffirming its commitment to building a resilient, transparent, and innovation-driven market as a catalyst for sustainable economic growth.
source: Business day