Nigeria’s capital market has recorded a major breakthrough with the official launch of a T+1 settlement cycle, making it the first market in Africa to adopt the faster post-trade system. The move is expected to significantly improve efficiency, reduce transaction risks, and strengthen Nigeria’s competitiveness in the global financial space.
The announcement was made during the T+1 Settlement Cycle Transition Ceremony held in Lagos, where the Director-General of the Securities and Exchange Commission (SEC), Emomotimi Agama, described the development as a “defining moment” in the evolution of the country’s financial market. He noted that Nigeria’s rapid shift from T+2 to T+1 in just six months reflects strong regulatory commitment and industry coordination.
According to Agama, the reform aligns Nigeria’s capital market with global best practices already being adopted in advanced financial systems. He explained that shorter settlement cycles help reduce counterparty risk, improve post-trade efficiency, and boost investor confidence, while also positioning Nigeria as more attractive to international capital flows.
Stakeholders across the market also welcomed the milestone. The Group Chairman of NGX Group, Umaru Kwairanga, said the transition reflects a shared commitment to strengthening institutions and deepening market confidence. NGX Group CEO, Temi Popoola, added that while the achievement is significant, it represents only one step in a broader journey toward building a deeper and more liquid capital market.
The Managing Director of CSCS Plc, Shehu Shantali, highlighted that the transition shows the strength of Nigeria’s post-trade infrastructure, noting improvements in transaction speed, liquidity efficiency, and reduced settlement exposure. The event ended with a symbolic closing gong ceremony, marking the official start of the T+1 system after six months of nationwide coordination among regulators, exchanges, and market operators.
source: punch