Nigeria's Stock Market Enhanced by T+1 Settlement Cycle, Says SEC
SEC Praises T+1 Settlement Cycle for Boosting Nigerian Stock Market
Good news for investors in the Nigerian capital market! The Securities and Exchange Commission (SEC), Nigeria’s primary capital market regulator, has highlighted the positive impact of the new T+1 settlement cycle.
What happened
The SEC stated that moving to a two-day transaction settlement cycle, known as T+1, has enhanced the competitiveness and overall depth of the Nigerian capital market. This means that when you buy or sell shares, the transaction is finalized within one business day after the trade date, as opposed to longer periods previously.
Why it matters
A faster settlement cycle reduces risks for investors and can attract more foreign and local investment. It increases market liquidity and efficiency, aligning Nigeria with more advanced global stock markets. This move is a step towards modernizing Nigeria's financial infrastructure and potentially making it a more attractive destination for capital.
Key Points
- Faster Settlements: Transactions now settle one day after the trade date (T+1).
- Improved Competitiveness: The change makes the Nigerian market more appealing to investors.
- Increased Depth: Enhanced liquidity and efficiency are contributing to a deeper market.
- Modernization: Aligns Nigeria with international best practices in capital market operations.
Background
The transition to T+1 has been a strategic effort by the SEC to improve market infrastructure and reduce settlement risks, aiming to foster a more robust and dynamic capital market in Nigeria.
Source: The Nation Online (thenationonlineng.net)
---
Source: reported by The Nation Online (2026-08-31) — [https://thenationonlineng.net/two-day-settlement-cycle-has-enhanced-stock-market-says-sec/](https://thenationonlineng.net/two-day-settlement-cycle-has-enhanced-stock-market-says-sec/). Written up for Ratelforum; the forum did not originally report this.
How do you think a faster settlement cycle will impact the average Nigerian investor, especially those looking at long-term investments?