T+1 Settlement cycle On Smooth Course , Boosting Nigeria’s Market Competitiveness – SEC

The Securities and Exchange Commission (SEC) has said the implementation of the T+1 settlement cycle in Nigeria’s capital market is progressing smoothly, with investors expressing satisfaction over the reform.

The Director-General of the SEC, Dr. Emomotimi Agama, disclosed this in Abuja at the weekend . He was represented by the Director, Registration, Exchanges and Market Infrastructure, Mrs. Hafsat Rufai.

According to Agama, both local and international investors have welcomed the new settlement regime, which he said had improved the efficiency and competitiveness of the Nigerian capital market while reducing the waiting period for investors to receive their securities or cash.

“Feedback from them has been excellent. They are happy with T+1, and the local investors are also happy with T+1,” he said.

He explained that one of the major concerns before the implementation was whether investors, particularly international investors, would be able to mobilise funds within the required timeframe because of differences in time zones.

Agama, however, said the decision to move the settlement deadline from 8:00 a.m. to 5:00 p.m. had provided sufficient time for custodian banks representing international investors to source funds and complete settlement.

He noted that the Nigerian market operates on a delivery-versus-payment (DVP) basis, requiring both securities and cash to be available for settlement.

“Knowing that it is not at 8:00 a.m., it is 5:00 p.m., I think that gives enough time for the custodian banks, who are representatives of those investors, to source the funds required and settle the securities and cash as well,” he said.

The SEC DG disclosed that no default had so far been recorded as a result of insufficient funds at the new settlement deadline.
“So far, it has been good. Feedback has also been very excellent,” Agama added.

Agama recalled that Nigeria’s capital market operated under a T+3 settlement cycle for several years before regulators began a phased transition to shorten the settlement period.

The market moved from T+3 to T+2 on November 28, 2025, before completing the transition to T+1 on June 1, 2026.

He explained that T+1 means that transactions conducted on a particular trading day are settled on the following business day.

“For instance, if you buy your shares today, being a Monday, the shares will settle in your account by 5:00 p.m. tomorrow,” he explained.

According to him, the reform is designed to make the Nigerian market more efficient, attractive and competitive while improving liquidity and reducing settlement risks.

He said the move to T+1 was necessary because investors should not have to wait several days before receiving securities or cash arising from completed transactions.

“Why buy today and wait for another 48 hours or thereabout, or two days, before you get your security? So, we shortened that transaction cycle … to T+1,” he said.

The SEC DG also explained that the settlement deadline was shifted from 8:00 a.m. to 5:00 p.m. following the extension of trading hours on the Nigerian Exchange (NGX).
Trading hours were earlier extended from 2:30 p.m. to 4:00 p.m.

Agama said retaining an 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.

He stressed that the new 5:00 p.m. deadline was therefore designed to give investors, custodians and other market participants adequate time to complete settlement while maintaining the benefits of the shorter T+1 cycle.