The Securities and Exchange Commission has set 5:00 p.m. on the first business day after a transaction (T+1) as the deadline for settling equities and commodities trades conducted through the Central Securities Clearing System. The clarification is part of the SEC’s ongoing implementation of the T+1 settlement cycle in Nigeria’s capital market.
In a circular issued to capital market operators and other participants, the regulator said all affected transactions must be fully funded by 5:00 p.m. on T+1. The requirement is designed to ensure that trades are completed under the standard Delivery versus Payment settlement process, helping to make transactions more predictable and efficient for market participants.
The SEC warned that brokers and dealers who fail to adequately fund their trading accounts within the required timeframe could face action under the CSCS Default Management Procedure and other applicable settlement rules of the relevant exchange. However, the Commission clarified that foreign portfolio investors are not required to prefund their accounts before trading in the Nigerian market.
Despite this, capital market operators handling transactions for foreign portfolio investors are expected to put proper controls in place to ensure funds are available and settlements are completed on time. The latest clarification follows the SEC’s earlier circulars on the T+2 settlement cycle issued in June 2025 and the subsequent transition to T+1 announced in May 2026.
The move to T+1 settlement means eligible securities trades are completed one business day after the transaction, cutting the waiting period between trade execution and final settlement. The SEC described the reform as an important step toward creating a more efficient and internationally aligned Nigerian capital market, noting that faster settlement could reduce counterparty risk, improve liquidity and make the market more attractive to both local and international investors.
source: punch
