The Securities and Exchange Commission (SEC) has said Nigeria’s new T+1 settlement regime is operating smoothly, with no settlement default recorded over funding constraints since its implementation on June 1, 2026.
The Director-General of the SEC, Dr Emomotimi Agama, disclosed this in an interview with journalists in Abuja at the weekend.
Agama, who was represented by the Director, Registration, Exchanges and Market Infrastructure, Mrs Hafsat Rufai, said both local and international investors had expressed satisfaction with the new settlement system, which he said had improved the efficiency and competitiveness of the Nigerian capital market.
“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 him, concerns that investors, particularly those operating across different time zones, might struggle to provide funds within the shortened settlement period had not materialised.
He explained that the settlement deadline of 5:00 p.m., rather than the previous 8:00 a.m., gives custodian banks enough time to source funds and complete transactions on behalf of investors.
“But knowing that it is not at 8:00 a.m., it is 5:00 p.m., I think that gives enough time for the custodian banks, who are representatives of those investors, to source the funds required and settle the securities and cash as well, because it’s a DVP market. It’s delivery versus payment,” Agama said.
He said no default had so far been recorded as a result of the unavailability of funds for settlement under the new arrangement.
“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 added.
Nigeria moves from T+3 to T+1
Pinnacle Daily reports that the Nigerian capital market operated under a T+3 settlement cycle for several years before the SEC began a phased transition to shorten the period between the execution and settlement of transactions.
The market moved from T+3 to T+2 on November 28, 2025, before completing the transition to T+1 on June 1, 2026.
Agama said the move was designed to modernise the market, improve its competitiveness and attractiveness, increase liquidity and reduce settlement risks.
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He explained that T+1 means transactions are settled one business day after the trade is executed.
“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.
Agama said shortening the settlement cycle allows investors to receive their securities or cash sooner, making the market more efficient.
“The emphasis on 5:00 p.m. is that over the years, when you were on T+3 or T+2, settlement time was 8:00 a.m. Meaning that if you buy your shares today on T+2, that is the trade date, and then two days after, which would have been Wednesday when you were on T+2, you would get your shares if you bought, or you get your cash if you sold at 8:00 a.m.
“Now we decided that we need to do better for the Nigerian market by shortening that cycle. So why buy today and wait for another 48 hours or thereabout, or two days, before you get your security? So, we shortened that transaction cycle, or settlement cycle, I beg pardon, to T+1, meaning that the trade day and a day after, that’s the first step.”
Settlement deadline shifts to 5pm
The SEC DG said the market also shifted the settlement deadline from 8:00 a.m. to 5:00 p.m. following the extension of trading hours on the Nigerian Exchange (NGX).
Trading hours were earlier extended from 2:30 p.m. to 4:00 p.m.
Agama said maintaining the 8:00 a.m. settlement deadline after extending trading hours would have placed unnecessary pressure on investors and their custodians.
“If you recall, we extended trading hours earlier this year from 2:30 to 4:00 p.m. at the NGX, and then we thought, if market closes at 4:00 and we ask people to settle, that is, to provide cash and securities, at 8:00 a.m. the next day, that kind of close to being T+0 is almost as good as just telling me to pay today, and we don’t want that strain,” he added.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X