SEC Sets 5pm T+1 Deadline for Equities, Commodities Settlement
SEC Sets 5pm T+1 Deadline for Equities, Commodities Settlement
The Securities and Exchange Commission (SEC) has clarified that equities and commodities transactions settled through the Central Securities Clearing System (CSCS) must be completed by 5:00 p.m. on the first business day after the trade date (T+1).
The Commission made the clarification in a circular published on August 12, 2026, as part of its ongoing implementation of the T+1 settlement cycle in Nigeria’s capital market.
According to the SEC, transactions in affected securities must be fully paid at the prescribed settlement time to maintain the standard Delivery versus Payment (DvP) process. It added that defaults arising from inadequate funding in a broker or dealer’s trading account will be handled in line with the CSCS Default Management Procedure and applicable exchange settlement guidelines.
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 facilitating such transactions must maintain appropriate controls to ensure timely funding and settlement.
The clarification builds on the SEC’s earlier transition to the T+1 settlement cycle and is aimed at improving settlement efficiency, reducing counterparty risk and strengthening the competitiveness of Nigeria’s capital market.
