Nigeria’s capital market is edging toward real-time settlement, with regulators confirming that the technology required for same-day (T+0) settlement across the Nigerian Exchange (NGX) Group and other trading platforms is now fully in place. The push toward faster settlements marks a major step in aligning the domestic market with leading global exchanges, but authorities insist that the transition must be gradual to protect investors and maintain market stability.
At the second Capital Market Committee meeting for 2025 held in Lagos on December 8, Securities and Exchange Commission (SEC) Director General, Dr. Emomotimi Agama, stated that the market now has the “technological foundation” for T+0. However, he stressed that a cautious rollout remains essential, particularly given the large pool of institutional and retirement-related investors whose portfolios require a stable settlement ecosystem.
Agama reiterated that shorter settlement cycles offer clear benefits—enhanced liquidity, faster reinvestment of capital, and reduced counterparty risk. The updated settlement structure also now applies uniformly across the NGX, NASD OTC Securities Exchange, and the Lagos Commodities and Futures Exchange.
Market operators, including the Central Securities Clearing System (CSCS), confirmed they already have the technical capacity to process transactions on a same-day basis. Highcap Securities CEO, David Adonri, revealed that the CSCS had initially proposed an immediate switch from T+3 to T+0. Regulators, however, opted for a phased pathway to avoid destabilising the market.
A Deliberate, Multi-Phase Migration
The SEC’s settlement reform is anchored in what it calls “orderly growth and development”—a principle guiding its approach to structural market upgrades. Adonri said the Commission reminded stakeholders that the market “is not only for young people,” underscoring the need to protect pension funds, conservative asset holders, and those with sensitivity to risk.
The transition plan therefore proceeds in clearly defined steps:
- Phase 1: Migration from T+3 to T+2 in November 2025.
- Phase 2: Shift to T+1 settlement, effective now.
- Final Phase: Full T+0 adoption in 2026, once the ecosystem has gained adequate experience with shorter cycles.
This steady progression is designed to allow brokers, custodians, and asset managers to align their operations and internal risk frameworks with the demands of faster settlement.
Broader Market Reforms Launched by SEC
The settlement changes were announced alongside a suite of new SEC-led reforms aimed at deepening investor confidence, strengthening oversight, and accelerating digital adoption.
Agama noted that the earlier shift to T+2 had already improved liquidity and reduced counterparty exposures, helping Nigeria keep pace with international best practice. He also pointed to recent improvements in the macroeconomic environment: a sovereign credit rating upgrade, Nigeria’s removal from the FATF grey list, and moderating inflation, which dropped to 16.05 percent in October—its lowest level since March 2025.
Capital raising activities remained robust during the period, highlighted by approvals for the N500 billion Climate Funding SPV, the N200 billion Elektron Finance bond, and over N750 billion worth of commercial paper issued across key sectors such as manufacturing, agriculture, and energy.
Yet the market faced significant turbulence in November, recording its sharpest monthly decline ever with a loss of N6.54 trillion in market capitalisation. Factors included profit-taking tied to the proposed 30 percent Capital Gains Tax, weaker banking stocks, and global financial uncertainties. Agama maintained that recent government clarifications on tax policy have helped trigger a modest rebound.
Strengthening Oversight, Technology and Commodity Markets
The SEC is pushing a comprehensive digital transformation, including:
- Integrating capital market education into the national secondary school curriculum.
- Partnering with Nnamdi Azikiwe University for SME-oriented investor programmes.
- Expanding regional non-interest finance initiatives, with Nigeria’s N1.4 trillion Sukuk issuance serving as a continental benchmark.
Additional reforms include updated rules for commodity exchanges, warehouse operators, and collateral managers under the ISA 2025 framework. Work is also underway with the Standards Organisation of Nigeria to revise national commodity standards. Surveillance in the derivatives market is being strengthened, while the Digital Transformation Portal now automates operator registration, document submissions, and commercial paper processing.
A recent Technology Adoption Survey showed rising interest among market operators in AI, blockchain, and regulatory technology, despite challenges related to cost and skilled manpower. Agama emphasized that innovation must be balanced with ethical oversight and operational resilience.
He also unveiled a forthcoming Harmonized Corporate Governance Reporting Template designed to simplify disclosures for listed companies. With operator registration renewals scheduled for January 2026 and full electronic processing set for the first quarter of the year, the Commission aims to build a more transparent and innovation-driven regulatory landscape.
A Future Built on Responsible Innovation
Agama affirmed that Nigeria’s march toward T+0 settlement reflects a capital market determined to evolve while protecting investor trust—the core of sustainable growth. By pairing technological advancement with regulatory prudence, the SEC hopes to position the Nigerian market as one of the most efficient and forward-looking in the region.
The path to same-day settlement, he said, is not merely a technological upgrade but a strategic shift designed to strengthen market integrity and broaden investor participation, ensuring that the system remains inclusive, stable, and globally competitive.