The Securities and Exchange Commission (SEC) has said the adoption of the one-day transaction settlement cycle, known as T+1, is progressing smoothly in Nigeria’s capital market, with no default recorded so far over the availability of funds.
The SEC Director-General, Emomotimi Agama, disclosed this in an interview, according to a statement from SEC on Sunday. He spoke through the Director, Registration, Exchanges and Market Infrastructure, Hafsat Rufai.
Agama said the new settlement cycle had received positive feedback from both local and international investors, adding that the reform had enhanced the competitiveness and efficiency 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, one of the major concerns raised before the implementation of T+1 was whether investors would have sufficient time to source funds for settlement, particularly because of differences in international time zones.
He, however, said the decision to move the settlement deadline from 8:00 a.m. to 5:00 p.m. had provided custodians and other market participants with adequate time to meet their obligations.
