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Nigeria SEC sets 5pm T+1 settlement deadline for equities and commodities
The Nigerian Securities and Exchange Commission (SEC) has established a 5:00 p.m. deadline on the first business day after a transaction (T+1) for the settlement of equities and commodities. This directive, issued via a circular to market participants, aims to implement the T+1 settlement cycle through the Central Securities Clearing System (CSCS).
To comply with standard Delivery versus Payment (DvP) procedures, all transactions in the affected securities must be fully paid by the prescribed time. The SEC warned that if a broker or dealer fails to adequately fund a trading account to meet settlement obligations, the default will be managed according to the CSCS Default Management Procedure and relevant exchange guidelines.
Regarding foreign investment, the SEC clarified that foreign portfolio investors are not required to prefund their accounts for trades in the Nigerian capital market. However, market operators facilitating these trades must maintain appropriate controls to ensure timely funding and settlement completion. This move follows previous transitions from T+2 to T+1 cycles intended to create a more efficient and internationally aligned trading environment.
Entities
Central Securities Clearing System · Nigeria · Securities and Exchange Commission
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 3 SOURCES] All transactions in affected securities must be fully paid by the deadline to comply with Delivery versus Payment (DvP) procedures. insidebusiness.ng · tribuneonlineng.com · businessday.ng
- [● 3 SOURCES] The SEC has set a 5:00 p.m. deadline on the first business day after a transaction (T+1) for the settlement of equities and commodities. insidebusiness.ng · tribuneonlineng.com · businessday.ng
- [● 3 SOURCES] Foreign portfolio investors are not required to prefund their accounts for trades in the Nigerian capital market. insidebusiness.ng · tribuneonlineng.com · businessday.ng
- [● 3 SOURCES] Unfunded broker/dealer accounts will be managed according to the Central Securities Clearing System (CSCS) Default Management Procedure. insidebusiness.ng · tribuneonlineng.com · businessday.ng