The Securities and Exchange Commission (SEC) has said the adoption of the T+1 settlement cycle in Nigeria’s capital market is progressing smoothly, with both local and international investors expressing satisfaction with the new system.
The Director-General of the SEC, Dr Emomotimi Agama, disclosed this in Abuja at the weekend during an interaction with journalists. He was represented by the Director, Registration, Exchanges and Market Infrastructure, Mrs Hafsat Rufai.
Agama said feedback from investors had been largely positive, noting that concerns initially raised over the availability of funds and time-zone differences had not disrupted settlement operations.
“Feedback from them has been excellent. They are happy with T+1, and the local investors are also happy with T+1,” he said.
According to him, the decision to move the settlement deadline from 8:00 a.m. to 5:00 p.m. has provided sufficient time for custodian banks representing investors to source the funds and securities required for settlement.
He explained that the Nigerian market operates on a delivery-versus-payment (DVP) basis, meaning securities and cash are exchanged simultaneously.
The SEC boss disclosed that no default had so far been recorded as a result of investors’ inability to provide funds before the new 5:00 p.m. settlement deadline.
“So far, it has been good. Feedback has also been very excellent,” he said.
The T+1 settlement cycle means that transactions executed on a particular trading day are settled on the following business day. For instance, shares purchased on Monday are expected to settle in the investor’s account by 5:00 p.m. on Tuesday.
Agama explained that Nigeria’s capital market had operated under a T+3 settlement cycle for several years before the SEC commenced a phased transition to shorten the settlement period, modernise the market, reduce settlement risks and make the market more attractive and competitive.
The market transitioned from T+3 to T+2 on November 28, 2025, before migrating to T+1 on June 1, 2026.
He said the shorter settlement cycle would enable investors to receive their securities or proceeds from sales earlier, thereby improving market efficiency and liquidity.
Agama also linked the adjustment of the settlement deadline to the extension of trading hours on the Nigerian Exchange (NGX), which were increased from 2:30 p.m. to 4:00 p.m.
He said maintaining the former 8:00 a.m. settlement deadline after the extension of trading hours would have placed unnecessary pressure on market participants.
“If market closes at 4:00 and we ask people to settle, that is, to provide cash and securities, at 8:00 a.m. the next day, that kind of close to being T+0 is almost as good as just telling me to pay today, and we don’t want that strain,” he said.
The SEC said the T+1 regime is part of broader efforts to deepen the Nigerian capital market, improve its efficiency and strengthen its competitiveness within the global investment community.
