NGX leads Africa with T+1 settlement, cuts trade processing time
The Nigerian Exchange Limited (NGX) has implemented a T+1 settlement regime, reducing trade processing time and aligning the market with global trends.Summary
The Nigerian Exchange Limited (NGX) has successfully migrated to a T+1 settlement cycle, reducing the time required to settle trades from two business days to one. This shift, announced by the Securities and Exchange Commission (SEC), is expected to accelerate the transfer of cash and securities, improve market liquidity, and align Nigeria's capital market with global standards. Dr Emomotimi Agama, the Director-General of the SEC, highlighted that this move places Nigeria among markets like the United States, Canada, and India that have adopted faster settlement cycles to enhance efficiency and investor confidence. The transition also requires institutional players to reconfigure operations, including faster reconciliation and automated back-office processes. The Chief Executive Officer of CSCS Plc, Yahaya Shantali, emphasized that the upgrade will improve operational resilience and deepen integration with global financial systems. The NGX Group Chairman, Temi Popoola, described the milestone as a critical step in the broader evolution of Nigeria's capital market, aiming to build a more liquid and globally competitive market.
(Source：The Guardian)