CMC: SEC unveils broad market reforms, targets T+1 settlement

The Securities and Exchange Commission (SEC) of Nigeria has announced comprehensive reforms to strengthen market efficiency, investor confidence, and digital transformation. Key initiatives include transitioning to a T+1, and eventually T+0, settlement cycle, building on the previous move to T+2. These changes aim to enhance liquidity and reduce risk. The SEC also highlighted positive developments such as Nigeria’s improved sovereign credit rating and removal from the FATF grey list, alongside strong capital-raising activities. Despite a November downturn driven by profit-taking and policy uncertainties, the market has shown resilience.

The SEC is actively promoting financial inclusion through educational programs, integrating capital market studies into school curricula and partnering with universities to support SME growth. Nigeria is also reinforcing its leadership in non-interest finance, sharing expertise with other countries and planning a Municipal Bond and Sukuk Summit. Efforts are underway to deepen the commodities and derivatives ecosystem through updated standards, risk mitigation, and regulatory frameworks.

Furthermore, the SEC is implementing technology-driven reforms, including a Digital Transformation Portal for online applications and automation of reporting. A survey revealed growing interest in technologies like AI and blockchain, though challenges remain. The SEC emphasized the importance of ethical innovation and data security, and will introduce a Harmonised Corporate Governance Reporting Template to streamline disclosures. Registration renewal for capital market operators will occur in January 2026, with electronic processing to follow.

(Source：Tribune)