The Securities and Exchange Commission has announced plans to transition Nigeria’s capital market from a T+3 to a T+2 settlement cycle to enhance market efficiency, reduce risks, and strengthen investor confidence.
The Director-General of the Commission, Emomotimi Agama, disclosed this at a Trade Associations Roundtable on ‘Ensuring Stakeholder Readiness for T+2 Settlement’ held in Abuja on Wednesday.
Agama said the transition represents a major milestone in aligning Nigeria’s capital market operations with international best practices, noting that it would make the market more competitive and resilient.
“A shorter settlement cycle is a hallmark of a mature, dynamic, and competitive market. It directly addresses several key objectives: it significantly reduces counterparty risk and market exposure. The less time between trade execution and final settlement, the lower the potential for a default to ripple through the system,” he stated.
The SEC boss added that the new system would also boost market liquidity by returning capital to investors more quickly, allowing for its redeployment and fostering greater market activity.
