The Securities and Exchange Commission (SEC) has fixed 5:00 p.m. on the first business day after a transaction, known as T+1, as the settlement deadline for equities and commodities traded through the Central Securities Clearing System (CSCS).

‎The Commission announced this in a circular issued on Wednesday to capital market operators and other market participants as part of the implementation of the T+1 settlement cycle in the Nigerian capital market.

‎Under the new arrangement, all affected securities transactions must be fully funded by 5:00 p.m. on T+1 in line with the Delivery versus Payment (DvP) settlement procedure, which requires the simultaneous delivery of securities and corresponding payment.

‎The SEC warned that any broker or dealer whose trading account is not adequately funded by the deadline will be treated as a defaulter. It said such cases would be handled in accordance with the CSCS Default Management Procedure and the settlement rules of the relevant exchange.

The Commission also clarified that foreign portfolio investors are not required to prefund their accounts for trades in the Nigerian market. However, capital market operators handling such transactions must establish adequate controls to ensure timely funding and settlement within the prescribed deadline.

‎The latest directive follows two earlier SEC circulars on settlement cycles. A circular issued on June 3, 2025, introduced the T+2 settlement cycle for equities, while another issued on May 15, 2026, announced the transition to T+1.

‎The SEC explained that the T+1 cycle means eligible securities transactions will be settled one business day after the trade date, thereby reducing the time between the execution of a transaction and its final settlement.

The Commission said the shorter settlement cycle would help create a more efficient, resilient and internationally aligned capital market by reducing counterparty risk, improving liquidity and enhancing the attractiveness of the Nigerian market to local and foreign investors.