Nigeria capital market T+1 settlement transition

The Nigerian Securities and Exchange Commission (SEC) implemented a T+1 settlement cycle for equities and commodities, establishing a 5:00 p.m. deadline on the first business day following a transaction. This directive aimed to align the Nigerian capital market with international standards through the Central Securities Clearing System (CSCS).

To ensure compliance with Delivery versus Payment (DvP) procedures, the SEC required all transactions to be fully paid by the deadline. While foreign portfolio investors were not required to prefund accounts, market operators were tasked with maintaining controls to ensure timely settlement. The SEC noted that failures to meet obligations would be managed via established default management procedures.

Following the implementation, the SEC reported a smooth transition, stating that the move has enhanced market efficiency and competitiveness. Officials noted that the 5:00 p.m. deadline provided sufficient time for custodian banks and participants to meet obligations, addressing initial concerns regarding funding and time zone differences. The SEC reported receiving positive feedback from both local and international investors, with no recorded defaults due to unavailable funds.