Nigeria is ready with the technology for same-day settlement of all transactions on the Nigerian Exchange (NGX) Group, the Securities and Exchange Commission (SEC), and market stakeholders have confirmed.
SEC Director General, Dr. Emomotimi Agama, announced the advancement during the second Capital Market Committee (CMC) meeting for 2025 held in Lagos today, December 8, emphasising that the market now possesses the technological foundation for same-day settlement—but must proceed with caution to protect investors and systemic stability.
He explained that shorter settlement cycles will enhance liquidity, reduce counterparty risk, and accelerate capital reinvestment.
The reform now applies across the Nigerian Exchange, NASD OTC Securities Exchange, and Lagos Commodities and Futures Exchange.
Market operators confirmed that the Central Securities Clearing System (CSCS) already has the technical capacity for T+0.
Highcap Securities CEO, Mr. David Adonri, disclosed that the CSCS initially proposed a dramatic leap from T+3 to T+0, but regulators insisted on a phased approach to ensure the safety of all investor categories, particularly pension funds and older asset holders with large, risk-sensitive portfolios.
Why SEC opted for a gradual migration
SEC’s position is anchored on what it calls “orderly growth and development”—a philosophy guiding every major infrastructural shift in the market. Instead of an abrupt movement from T+3 to T+0, the Commission charted a multi-stage transition:
- First, from T+3 to T+2 in November 2025.
- Next, today’s shift to T+1 settlement.
- Finally, arrival at T+0 by 2026 after sufficient operational experience is gained.
According to Adonri, the regulator insisted that “the market is not only for young people” and must be structured to safeguard the interests of institutional investors, retirees’ funds, and long-term asset holders. “Everything about the capital market has to be orderly,” he said, noting that while the technology is ready, the ecosystem must first adjust operationally and psychologically to shorter cycles.
SEC unveils broad market reforms to strengthen confidence
Alongside the settlement migration, the SEC launched a wide array of reforms aimed at boosting efficiency, deepening investor confidence, and accelerating digital transformation.
Director-General Dr. Emomotimi Agama announced that the earlier move from T+3 to T+2 on November 28 was already yielding improved liquidity and reduced counterparty risk, aligning Nigeria more closely with global practice. The new settlement structure now applies across the NGX, NASD OTC, and Lagos Commodities and Futures Exchange.
Agama highlighted improved macroeconomic indicators since May, including an upgrade to Nigeria’s sovereign credit rating, exit from the FATF grey list, and a fall in inflation to 16.05 percent in October, the lowest since March 2025.
Capital raising remained vibrant, with standout approvals such as the N500 billion Climate Funding SPV and N200 billion Elektron Finance bond, alongside N753 billion in commercial paper issuances across manufacturing, energy and agriculture.
But the market also faced turbulence in November, posting its steepest monthly decline on record as capitalization plunged by N6.54 trillion. Profit-taking linked to the proposed 30 percent Capital Gains Tax, weaker banking stocks, and global uncertainties contributed to the slump. Still, Agama assured that the market has begun a modest rebound following government clarification on tax policies.
Pushing digital adoption, stronger oversight and commodity market growth
The SEC is expanding financial literacy programmes by integrating capital market studies into the national secondary school curriculum. It is also collaborating with Nnamdi Azikiwe University on SME-focused market education and deepening regional partnerships in non-interest finance—highlighting Nigeria’s N1.4 trillion sovereign Sukuk issuance as a regional benchmark.
Further reforms include new rules under the ISA 2025 for commodity exchanges, warehouse operators, and collateral managers, alongside efforts with the Standards Organisation of Nigeria to update commodity standards. The Commission is also strengthening surveillance in the derivatives market and modernising its regulatory processes through the Digital Transformation Portal, which now automates operator registration, document submission, and commercial paper issuance.
A Technology Adoption Survey revealed rising interest in AI, blockchain and reg-tech despite cost and skill barriers. Agama stressed that technological innovation must be balanced with ethical safeguards and operational resilience. He also introduced a forthcoming Harmonized Corporate Governance Reporting Template to simplify disclosure obligations for public companies.
With registration renewals for capital market operators slated for January 2026 and full electronic processing to begin in Q1 2026, Agama reaffirmed the SEC’s commitment to building an innovation-driven market infrastructure. Nigeria’s move toward T+0, he said, symbolises a sector determined to evolve responsibly while protecting investor trust—the foundation of enduring market growth.
