Nigeria capital market begins shorter settlement cycle
Nigeria's capital market has transitioned to a T+1 settlement cycle, becoming the first in Africa to do so.Summary
The Nigerian capital market achieved a historic milestone on Monday by successfully transitioning to a T+1 settlement cycle, becoming the first market in Africa to implement this shortened framework. Speaking at the ceremony in Lagos, the Director-General of the Securities and Exchange Commission, Emomotimi Agama, described the development as a defining moment in the market's evolution. He noted that Nigeria has progressed from T+2 to T+1 in just six months, signaling its readiness to undertake structural reforms required to compete for global capital. The reform aligns the market with global best practices designed to improve post-trade efficiency, reduce counterparty risk, and strengthen investor confidence. Group Chairman of NGX Group, Alhaji Umaru Kwairanga, and Group Managing Director/Chief Executive Officer of NGX Group, Temi Popoola, both emphasized that this milestone is a critical step in the broader journey toward building a deeper, more liquid, and globally competitive market. The Managing Director/Chief Executive Officer of CSCS Plc, Shehu Shantali, highlighted that the transition represents a strategic upgrade to market infrastructure that will enhance transaction speed and reduce settlement exposure. The event was attended by key stakeholders, including regulators, exchanges, and market operators, and marks the culmination of six months of coordinated preparations across the industry.
(Source：Punch)