The Securities and Exchange Commission (SEC) has set 5:00 p.m. on Trade Date plus One (T+1) as the settlement deadline for equities and commodities transactions in Nigeria’s capital market.
The Commission disclosed this in a public notice signed by its management on August 12, 2026, providing further clarification on the implementation of the T+1 settlement cycle.
The latest directive builds on the SEC’s earlier circulars issued on June 3, 2025, on the T+2 settlement framework and May 15, 2026, on the transition to T+1.
The SEC said all equities and commodities transactions settled through the Central Securities Clearing System (CSCS) will be deemed fully paid at the time of settlement to ensure compliance with the standard Delivery versus Payment (DvP) procedure.
“The Commission hereby clarifies that settlement time for equities and commodities settled at CSCS is 5:00 p.m. T+1 (Trade date plus one),” the regulator stated.
The Commission added that all transactions in the affected securities will be deemed fully paid at the time of settlement to maintain the standard DvP settlement procedure.
Under the arrangement, where a broker-dealer’s trading account is insufficiently funded to meet its settlement obligations by the prescribed deadline, the default will be handled in accordance with the CSCS Default Management Procedure and the settlement guidelines of the relevant exchange.
The SEC also clarified that foreign portfolio investors are not required to pre-fund their accounts before executing trades in the Nigerian capital market.
“For the avoidance of doubt, foreign portfolio investors are not required to pre-fund their accounts for trades in the Nigerian Capital Market,” the Commission said.
However, capital market operators facilitating transactions for foreign investors are required to establish and maintain appropriate controls to ensure that sufficient funds are available for settlement within the prescribed timeframe.
The regulator said the implementation of the T+1 settlement cycle is expected to improve settlement efficiency, reduce counterparty risk, enhance market liquidity and strengthen the competitiveness of Nigeria’s capital market.
“The implementation of the T+1 settlement cycle represents a significant milestone in improving settlement efficiency, reducing counterparty risk, enhancing liquidity, and strengthening the competitiveness of the Nigerian capital market,” it said.
The clarification follows the launch of Nigeria’s T+1 settlement cycle by the Central Securities Clearing System (CSCS) Plc in June, completing the transition from the previous two-day settlement framework.
Under T+1, securities transactions executed on a trading day are settled on the following business day, reducing the period between trade execution and final settlement.
The SEC had earlier directed capital market operators and other stakeholders to align their systems and operational processes with the new settlement cycle.
The shorter settlement period is expected to reduce counterparty exposure by limiting the time available for a party to default before a transaction is settled.
It will also reduce the volume of unsettled transactions outstanding in the market at any given time.
Nigeria’s settlement cycle reform has progressed from T+3 to T+2 and now T+1, marking a significant overhaul of the country’s post-trade infrastructure.
The SEC has said the reform forms part of efforts to build a more efficient, resilient and internationally aligned capital market while improving Nigeria’s attractiveness to both domestic and foreign investors.
The latest clarification gives market participants a specific settlement deadline and further defines the responsibilities of brokers and other capital market operators under the T+1 framework.
