SEC says 5pm now settlement time for equities, commodities under T+1 cycle

The Securities and Exchange Commission (SEC) has set 5 pm on the first business day after a trade as the settlement deadline for equities and commodities transactions under the T+1 cycle.

The commission issued the deadline in a circular on Wednesday to clarify the implementation of the one-day settlement cycle in Nigeria’s capital market.

The SEC said the clarification was an update to its previous circulars on the implementation of the T+2 and T+1 settlement cycles.

“Settlement time for equities and commodities settled at CSCS is 5:00 p.m. T + 1 (Trade date plus one),” the commission said.

The SEC said transactions in affected securities must be fully paid at settlement to maintain the standard delivery-versus-payment (DvP) procedure.

“Accordingly, all transactions in the affected securities shall be deemed fully paid at the time of settlement to ensure maintenance of the standard settlement procedure of Delivery versus Payment (DvP),” SEC said.

“Where a broker/dealer’s trading account is not adequately funded to meet its settlement obligation at the prescribed time, the default shall be managed in line with the CSCS Default Management Procedure and the transaction settlement guidelines of the Exchange concerned.”

The commission also clarified that foreign portfolio investors (FPIs) are not required to prefund their accounts for trades in the Nigerian capital market.

“This notwithstanding, all Capital Market Operators facilitating transactions on behalf of foreign portfolio investors are required to establish and maintain appropriate controls and processes to ensure timely funding and settlement completion within the prescribed settlement timeline,” the regulator said.

The commission said the clarification updates its June 3, 2025 circular on the implementation of the T+2 settlement cycle and its May 15, 2026 circular on the transition to T+1.

The SEC said the development would improve the attractiveness of the market to domestic and international investors.

Nigeria became the first African market to adopt the shorter settlement cycle after moving from T+3 to T+2 in November 2025.

When Nigeria transitioned to T+1 in June, Emomotimi Agama, SEC director-general, said the move placed the country among markets representing about 60 percent of global market capitalisation that had adopted the shorter settlement cycle.

Agama said the commission had also begun planning towards T+0 settlement as part of efforts to further modernise the capital market. (TheCable)