Settlement for affected equities and commodities transactions is to be completed by 5:00 p.m. on T+1, meaning one business day after the trade date.
By Mmesoma Onwuka
365Daily – The Securities and Exchange Commission (SEC) has clarified the implementation of the T+1 settlement cycle for equities and commodities transactions settled through the Central Securities Clearing System (CSCS) in the Nigerian capital market.
In a public notice dated August 12, 2026, the Commission said settlement for affected equities and commodities transactions is to be completed by 5:00 p.m. on T+1, meaning one business day after the trade date.
The clarification follows earlier SEC circulars on the implementation of the T+2 settlement cycle for equities transactions, issued on June 3, 2025, and the transition to the T+1 settlement cycle, issued on May 15, 2026.
The SEC explained that transactions in the affected securities will be deemed fully paid at the time of settlement in line with the standard Delivery versus Payment (DvP) settlement procedure.
It added that where a broker/dealer’s trading account does not have sufficient funds to meet its settlement obligation by the prescribed deadline, the default will be handled in accordance with the CSCS Default Management Procedure and the relevant transaction settlement guidelines of the Exchange.
The Commission also clarified that foreign portfolio investors are not required to prefund their accounts for trades in the Nigerian capital market.
However, Capital Market Operators handling transactions for foreign portfolio investors are required to establish and maintain appropriate controls and processes to ensure that funding and settlement obligations are completed within the stipulated timeframe.
According to the SEC, the implementation of T+1 represents a significant step towards creating a more efficient, resilient and internationally aligned trading and post trade environment.
The Commission said the shorter settlement cycle is expected to improve settlement efficiency, reduce counterparty risk, enhance liquidity and strengthen the competitiveness of Nigeria’s capital market, making it more attractive to both domestic and international investors.