Nigeria joins US, Canada, India in global T+1 settlement league

Nigeria has successfully transitioned its securities market to a T+1 settlement cycle, effective Monday, joining major markets like the United States, Canada, and India. This move, announced by the Securities and Exchange Commission (SEC) and market operators, aims to improve liquidity, reduce counterparty risks, and enhance the country's appeal to both domestic and foreign investors. Dr. Emomotimi Agama, the SEC Director-General, noted that this places Nigeria among markets representing approximately 60% of global market capitalization that have adopted the shorter cycle. He highlighted that the transition is part of a broader effort to align with international standards and improve competitiveness for global capital. The shift allows investors to receive cash or securities one business day after trading, a significant improvement from the previous T+2 framework. Agama emphasized that the shorter cycle would enable investors to access funds more quickly, stating, "What does that mean for a retail investor... who sells shares today? It means their cash is available tomorrow." The SEC has also signaled its intention to move toward T+0 settlement in the near future. The Central Securities Clearing System (CSCS) and NGX Group officials praised the transition as a milestone in a modernization process that began over three decades ago. They highlighted substantial investments in infrastructure and technology to support the new cycle, which they believe will make the Nigerian market one of the most efficient globally. The shift is part of broader reforms under the Investments and Securities Act 2025, with stakeholders already exploring initiatives to expand market depth and activity beyond traditional equities.

(Source：The Sun Nigeria)