ABUJA, Aug 13 – Nigeria’s Securities and Exchange Commission (SEC) has set 5:00 p.m. on the next business day as the deadline for settling equities and commodities transactions in Nigeria’s capital market, giving further clarification on the implementation of the T+1 settlement cycle.
The Commission announced the deadline in a public notice issued on August 12, 2026, following its earlier directives on the move from the T+2 settlement system to T+1, under which trades carried out on one business day are settled on the following business day.
The SEC said all equities and commodities transactions settled through the Central Securities Clearing System (CSCS) must be fully paid by 5:00 p.m. on T+1, in line with the Delivery versus Payment (DvP) process, which requires the transfer of securities and payment to take place at settlement.
Where a broker-dealer does not have enough funds in its trading account to meet its settlement obligations by the deadline, the SEC said the default will be handled under the CSCS Default Management Procedure and the settlement rules of the relevant exchange.
The Commission also clarified that foreign portfolio investors are not required to pre-fund their accounts before carrying out trades in Nigeria’s capital market, although capital market operators handling such transactions must have proper controls in place to ensure that funds are available when settlement is due.
The T+1 settlement cycle was launched by CSCS in June, replacing the previous T+2 system as Nigeria continues its move from T+3 to T+2 and now T+1 to improve the efficiency of its capital market and post-trade processes.
According to the SEC, the shorter settlement period is expected to reduce the risk of failed transactions, improve market liquidity and lower the amount of unsettled trades in the market, while also reducing the period during which buyers and sellers are exposed to counterparty risk.
The regulator said the move is part of wider efforts to create a more efficient and internationally aligned Nigerian capital market, while making the market more attractive to both domestic and foreign investors.
The latest clarification gives brokers, investors and other market participants a specific deadline for completing transactions under the T+1 settlement framework and further explains their responsibilities under the new system.
