Nigeria’s capital market is entering a new era of speed and efficiency as the Securities and Exchange Commission (SEC) intensifies efforts to achieve a near-zero trade fail rate under the recently introduced T+1 settlement framework. SEC Director-General, Dr. Emomotimi Agama, revealed that the Commission’s major focus for the second half of 2026 is ensuring smooth and seamless settlement of securities transactions as market participants adjust to the shortened settlement cycle. The move is expected to strengthen investor confidence and position Nigeria among the world’s more advanced financial markets.
According to Agama, early indicators since the launch of the T+1 settlement system in June have been encouraging. The framework, which allows securities transactions to settle on the next business day after execution, replaces the previous two-day settlement cycle. He noted that the SEC is aiming to establish at least one full quarter of flawless settlement performance, with brokers, custodians, settlement banks, and the Central Securities Clearing System (CSCS) working together to maintain strict delivery-versus-payment discipline across the market.
A major priority for regulators is ensuring that foreign investors can complete foreign exchange transactions and funding processes within the tighter settlement window without requiring pre-funding. To achieve this, the SEC is collaborating closely with the Central Bank of Nigeria (CBN), custodians, and settlement banks to enable same-day foreign exchange execution and confirmation. Agama also emphasized the need to modernize the Certificate of Capital Importation (CCI) process, calling for a fully digital, predictable, and efficient system that supports smoother entry and exit for international investors.
The SEC boss described FTSE Russell’s decision to place Nigeria under review during the T+1 transition as a routine step taken by global index providers whenever significant market reforms occur. The review will assess whether the new settlement structure works effectively for foreign portfolio investors. Despite expectations of a more selective investment environment in the coming months, Agama remains optimistic, pointing to the stock market’s impressive 47.4% gain in the first half of the year, alongside stronger foreign participation, bank recapitalization efforts, resilient corporate earnings, and a growing pipeline of new listings.
Beyond settlement reforms, the SEC sees the implementation of the Investments and Securities Act (ISA) 2025 as a game-changing development for Nigeria’s financial sector. The legislation strengthens investor protection, expands the Commission’s enforcement powers, brings digital assets under formal regulation, and imposes tougher penalties on Ponzi schemes. With continued reforms, stronger technology-driven supervision, expanding ESG standards, and increased issuance of infrastructure and green finance instruments, Nigeria’s capital market is positioning itself for sustainable growth and greater global competitiveness in the years ahead.
source: nairametrics
