Nigeria SEC reports smooth adoption of T+1 settlement cycle

The Securities and Exchange Commission (SEC) of Nigeria has reported that the transition to a T+1 settlement cycle in the nation’s capital market is progressing smoothly. SEC Director-General Dr. Emomotimi Agama, represented by Mrs. Hafsat Rufai, stated that the move has enhanced market competitiveness and efficiency.

Initial concerns regarding the transition focused on whether investors could source sufficient funds for settlement, particularly given international time zone differences. However, the SEC noted that setting the settlement deadline at 5:00 p.m. rather than 8:00 a.m. has provided custodian banks and market participants adequate time to meet their obligations in the delivery versus payment (DVP) market.

According to the SEC, both local and international investors have provided excellent feedback regarding the new cycle, and no defaults have been recorded due to the unavailability of funds since the implementation.