Transition to T+2 Settlement Major Milestone for Capital Market – THISDAYLIVE

Dr. Emomotimi Agama, Director-General of the Securities and Exchange Commission (SEC), announced the successful transition to a T+2 settlement cycle for equities, marking a major milestone for the Nigerian capital market and bringing it in line with global best practices. This reform, applicable across Nigerian Exchange, NASD OTC Securities Exchange, and Lagos Commodities and Futures Exchange, aims to enhance liquidity, reduce counterparty risk, and accelerate capital reinvestment. Nigeria is also planning to move towards T+1 and eventually T+0 settlement cycles.

Agama highlighted positive developments such as Nigeria’s improved sovereign credit rating and removal from the FATF grey list, contributing to increased investor confidence. Strong capital-raising activities were reported, including significant bond and commercial paper issuances. However, the market experienced a downturn in November due to profit-taking and policy uncertainties, but has since shown resilience. The SEC is actively promoting market development and financial inclusion through educational initiatives, including integrating capital market studies into the national secondary school curriculum.

The SEC is also focused on deepening the commodities and derivatives ecosystem, updating commodity standards, and strengthening oversight of commodity exchanges. Furthermore, the Commission is implementing technology-driven regulatory reforms, including a Digital Transformation Portal for online applications and approvals, and is addressing challenges related to technology adoption, such as high costs and skill shortages. A Harmonized Corporate Governance Reporting Template will also be implemented to streamline disclosures and reduce compliance burdens.

(Source：Thisdaylive)