Nigeria activates plans for T+1 settlement as SEC unveils broad market reforms - Businessday NG
Nigeria's SEC announced reforms to boost market efficiency, including moving to a T+1 settlement cycle and enhancing digital transformation.Summary
The Securities and Exchange Commission (SEC) of Nigeria has announced a series of reforms designed to strengthen market efficiency, deepen investor confidence, and accelerate the digital transformation of the nation’s capital market. Director-General Emomotimi Agama confirmed Nigeria’s transition to a T+1, and eventually T+0, settlement cycle, building on the previous move from T+3 to T+2. These shorter settlement cycles aim to enhance liquidity and reduce risk.
Alongside settlement improvements, the SEC highlighted positive developments such as Nigeria’s improved sovereign credit rating and removal from the FATF grey list, contributing to increased investor confidence. Despite a temporary market downturn in November due to profit-taking and policy uncertainties, the market has shown resilience. The SEC is also focusing on financial inclusion through educational initiatives, including integrating capital market studies into the secondary school curriculum.
Further reforms include strengthening the commodities and derivatives ecosystem, updating regulatory frameworks under the Investments and Securities Act (ISA) 2025, and leveraging technology through a Digital Transformation Portal. The SEC is also prioritizing cybersecurity and responsible innovation, emphasizing the importance of investor data protection and market integrity. A Harmonized Corporate Governance Reporting Template will also be implemented to streamline disclosures for public companies.
(Source：Business News Nigeria)