Nigeria is now technologically prepared for same-day settlement of transactions across the Nigerian Exchange (NGX), the Securities and Exchange Commission (SEC) has announced.
Speaking at the second Capital Market Committee (CMC) meeting for 2025 held in Lagos on December 8, Dr. Emomotimi Agama, SEC Director-General, said the market now has the infrastructure to execute T+0 settlement. However, he cautioned that the transition must be carefully managed to preserve investor protection and systemic stability.
According to Agama, shorter settlement cycles will boost market liquidity, lower counterparty risks, and accelerate the pace at which capital is reinvested.
Technology Ready, But a Phased Transition Needed
Market operators confirmed that the Central Securities Clearing System (CSCS) already has the technical capacity for T+0 settlement.
Mr. David Adonri, CEO of Highcap Securities, revealed that CSCS once proposed moving directly from T+3 to T+0, but regulators insisted on a gradual migration to protect all investor classes, especially pension funds and older asset holders with low-risk tolerance.
To ensure what the SEC describes as “orderly growth and development,” the regulator adopted a three-stage transition plan:
- T+3 to T+2 in November 2025
- T+2 to T+1, effective today
- Full T+0 settlement targeted for 2026, after the market gains operational experience
Adonri explained that while the technology is ready, all ecosystem players need time to adjust operationally and psychologically to faster settlement cycles.
SEC Rolls Out Broad Reforms to Deepen Confidence
Alongside the settlement reforms, the SEC unveiled a comprehensive package of initiatives aimed at improving efficiency, strengthening oversight, and accelerating digital transformation across the capital market.
Agama noted that Nigeria’s recent macroeconomic improvements, an upgraded sovereign credit rating, exit from the FATF grey list, and October inflation easing to 16.05 per cent, have all helped reinforce market confidence.
Capital raising activities remained strong, highlighted by approvals for:
- N500 billion Climate Funding SPV,
- N200 billion Elektron Finance bond, and
- N753 billion in commercial paper issuances across manufacturing, energy, and agriculture.
Despite these gains, the market suffered its deepest monthly decline on record in November, losing N6.54 trillion in capitalisation due to profit-taking linked to the proposed 30 per cent Capital Gains Tax, weaker banking stocks, and global market volatility. Agama assured stakeholders that the market is already stabilising following government clarification on the tax policy.
Digital Expansion, Market Oversight, and Commodity Reforms
The SEC also announced:
- Integration of capital market studies into the national secondary school curriculum,
- A partnership with Nnamdi Azikiwe University to expand SME-focused market education,
- Strengthened regional collaboration on non-interest finance, with Nigeria’s N1.4 trillion sovereign Sukuk cited as a regional benchmark.
To boost commodity market governance, the Commission introduced new rules under the ISA 2025 for commodity exchanges, warehouse operators, and collateral managers, and is working with the Standards Organisation of Nigeria to update commodity standards.
Other initiatives include:
- Enhanced surveillance of the derivatives market,
- Expansion of the Digital Transformation Portal for automated operator registration, document submission, and commercial paper issuance,
- A new Harmonised Corporate Governance Reporting Template to streamline disclosures for listed companies.
A recent Technology Adoption Survey showed growing interest in AI, blockchain, and reg-tech, though cost and skill shortages remain barriers. Agama emphasised that innovation must be matched with robust ethical and operational safeguards.
With operator registration renewals set for January 2026 and full electronic processing slated for Q1 2026, the SEC says Nigeria’s move toward T+0 settlement marks a decisive step toward building a modern, innovation-driven capital market, one that grows responsibly while safeguarding investor trust.
