SEC says T+1 settlement cycle progressing smoothly, investors express satisfaction

By Onu Okorie

Director-General of the Securities and Exchange Commission SEC, Dr. Emomotimi Agama has said the implementation of the T+1 settlement cycle in Nigeria’s capital market is progressing smoothly, with both local and international investors expressing satisfaction with the new settlement regime.
Dr. Agama, disclosed this in an interview with journalists in Abuja at the weekend, where he said the transition had enhanced the competitiveness of the Nigerian capital market while providing greater convenience and relief to market participants.
Agama, who was represented by the Director, Registration, Exchanges and Market Infrastructure, Mrs. Hafsat Rufai, said feedback from investors since the commencement of the T+1 settlement cycle had been encouraging.
“Feedback from them has been excellent. They are happy with T+1, and the local investors are also happy with T+1,” he said.
According to the SEC boss, one of the major concerns raised before the implementation of the new settlement regime was the ability of investors, particularly international investors, to source funds within the shorter settlement window due to differences in time zones.
He explained that the decision to shift the settlement deadline from 8:00 a.m. to 5:00 p.m. had addressed the concern by providing custodian banks representing investors with sufficient time to mobilise funds required to complete transactions.
“Sometimes, in some countries, when we are closing our market at 4:00 p.m., it is still early in the day. Sometimes, it’s even longer than being early in the day; it’s midnight in some countries. And so everybody is concerned about how to source cash or how to source funds for settlement,” Agama said.
He added that the new 5:00 p.m. deadline had significantly eased the pressure on market participants, as custodian banks now had adequate time to source funds and settle both securities and cash under the delivery-versus-payment arrangement.
Agama also disclosed that no default had so far been recorded as a result of inadequate funds under the new settlement deadline.
“It’s just a matter of letting everybody understand that the settlement time is not 8:00 a.m.; it is 5:00 p.m. And by 5:00 p.m., everybody is good. So far, it has been good. Feedback has also been very excellent,” he said.
The SEC Director-General explained that Nigeria’s capital market had operated under a T+3 settlement cycle for several years before the regulator began a phased transition to shorter settlement periods as part of efforts to modernise the market.
He said the reform was aimed at improving the competitiveness and attractiveness of the Nigerian capital market, increasing liquidity and reducing settlement risks.
According to him, the market moved from T+3 to T+2 on November 28, 2025, before completing the transition to the T+1 settlement cycle on June 1, 2026.
Explaining the new regime, Agama said T+1 means that transactions are settled one business day after the trade date.
“Transaction day or the trade day when your shares are bought or sold on a particular day, that is day T, and then plus one, which is the current settlement cycle, means that when you buy your shares, say for instance you buy today, being a Monday, the shares will settle in your account by 5:00 p.m. tomorrow,” he said.
He said the shortened settlement period would enable investors to receive their securities or proceeds from the sale of shares more quickly, thereby improving efficiency in the market.
Under the former T+2 arrangement, Agama explained, an investor who traded on a Monday would generally have to wait until Wednesday to receive either the securities purchased or the proceeds from the sale, with settlement previously taking place by 8:00 a.m.
The successful implementation of the T+1 cycle, according to the SEC, is expected to further strengthen Nigeria’s capital market infrastructure and align the country more closely with global best practices in securities settlement.