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By Chukwuma Umeorah
The Securities and Exchange Commission (SEC) has announced major reforms across the capital market, confirming Nigeria’s move toward a T+1 settlement cycle and a future transition to T+0 as part of efforts to strengthen market efficiency and improve investor confidence.
Speaking at the second Capital Market Committee (CMC) meeting for 2025, SEC Director-General Emomotimi Agama said the recent shift from T+3 to T+2, which was implemented on 28 November, marked an important step in aligning the Nigerian market with international standards. He stressed that even shorter settlement timelines will further “enhance liquidity, reduce counterparty risk, and accelerate capital reinvestment.”
The settlement reform now applies to the Nigerian Exchange (NGX), NASD OTC Securities Exchange, and the Lagos Commodities and Futures Exchange.
Agama outlined key market developments since the last CMC meeting in May, citing Nigeria’s upgraded sovereign credit rating, removal from the FATF grey list, and a decline in headline inflation to 16.05 per cent in October—its lowest level since March 2025—as factors that have supported improved investor sentiment.
He reported strong capital-raising activity between April and October, with approvals granted for major transactions across debt, equity, and commercial paper markets. Significant programmes include the N500bn Climate Funding SPV and the N200bn Elektron Finance bond, which he said reflect rising interest in infrastructure and sustainable finance. The commercial paper market also remained active with more than N753bn issued across manufacturing, energy, and agriculture.
Despite these positives, Agama acknowledged that the market experienced sharp declines in November, when the Nigerian Exchange posted its steepest monthly loss on record. Market capitalisation fell N6.54trn, while the All-Share Index shed nearly 7 per cent, driven by profit-taking ahead of the proposed 30 per cent Capital Gains Tax, weak sentiment around banking stocks, and broader policy and global uncertainties. He noted that the market has recorded modest recovery following government clarifications on fiscal and tax policy and remains positive year-to-date.
The SEC is expanding its market development and financial inclusion programmes, including integrating capital market studies into the national secondary school curriculum in partnership with the Nigerian Educational Research and Development Council. At the tertiary level, the Commission partnered with Nnamdi Azikiwe University on a conference focused on capital-market opportunities for SMEs.
In regional work, the SEC engaged a delegation from the Bank of Ghana on strengthening regulatory frameworks for non-interest finance, highlighting Nigeria’s N1.4trn sovereign Sukuk issuances and the growth of Islamic mutual funds. Planning is underway for a Municipal Bond and Sukuk Summit slated for the first quarter of 2026.
Agama also discussed ongoing efforts to deepen the commodities and derivatives markets. The SEC is working with the Standards Organisation of Nigeria to update commodity standards, with insurance brokers on risk mitigation, and with the Ministry of Solid Minerals to improve funding for mining companies. Discussions with the Central Bank of Nigeria are ongoing to secure liquidity status for warehouse receipts. The Commission is also conducting inspections and financial reviews of commodity exchanges, including Gezawa and NCX, as part of broader oversight reforms.
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Under the Investments and Securities Act (ISA) 2025, new rules are being developed for commodity exchanges, collateral managers, warehouse operators, and warehouse receipt issuers. Study tours of exchanges and clearing agencies are informing updates to these frameworks.
In the derivatives segment, the SEC is working with market stakeholders to deploy a real-time surveillance system. Updated rules on central counterparties, derivatives trading, online forex, and NG Clearing operations have been submitted to the Rules Committee. Work is also ongoing on a draft systemic risk management rule designed to strengthen governance across regulated entities.
Agama highlighted progress in technology-driven regulation through the SEC’s Digital Transformation Portal, which now supports application submissions, document uploads, and real-time approval tracking for capital-market operators. A commercial paper module has been introduced, while automation of quarterly and annual returns is underway. He said ongoing upgrades to IT systems and cybersecurity will further support the reforms.
He also presented findings from the SEC’s Technology Adoption Survey conducted in May 2025, which showed slow adoption of advanced technologies in the market. While cloud computing and cybersecurity tools are increasingly used, adoption of artificial intelligence and big data remains below 10 per cent. More than 70 per cent of firms plan to adopt AI, blockchain, and regulatory technology within three years, though many still face challenges such as high implementation costs, limited skilled personnel, and legacy system integration constraints.
Agama stressed that innovation must be approached with responsibility, reminding operators that safeguarding investor data, preventing market abuse, and maintaining operational resilience are essential to market integrity.
The SEC will also introduce a Harmonised Corporate Governance Reporting Template for public companies to streamline disclosures and reduce duplication across existing regulations, the Nigerian Code of Corporate Governance 2018, and the Business Facilitation Act 2022.
He announced that renewal of registration for capital-market operators will run from 1 to 31 January 2026, while full electronic receipt and processing of registration applications will begin in the first quarter of 2026.
Agama concluded by reaffirming the Commission’s focus on building a transparent, resilient, and innovation-driven market, noting that “a strong capital market is not built in a day; it is shaped by vision, collaboration, and resilience.”
