SEC Unveils Major Market Reforms
…Moves Nigeria Toward T+1 and Digital-First Capital Market
By Patience Ikpeme
The Securities and Exchange Commission (SEC) has announced an extensive package of reforms designed to modernise Nigeria’s capital market, strengthen investor confidence, and create a more technology-driven investment environment.
Speaking at the second Capital Market Committee (CMC) meeting for 2025, SEC Director-General, Dr. Emomotimi Agama, confirmed that Nigeria is now firmly on the path toward a T+1 settlement cycle, with an eventual transition to T+0 planned as market infrastructure evolves.
Agama described the recent implementation of T+2 settlement on November 28 as “a major step forward for our market,” adding that the shift from T+3 “places Nigeria in closer alignment with global standards and supports a more liquid and efficient market structure.” He said shorter settlement windows will reduce counterparty risk, speed up capital reinvestment, and strengthen market stability.
The settlement reform now applies to the Nigerian Exchange, NASD OTC Securities Exchange and the Lagos Commodities and Futures Exchange, making it a system-wide shift.
Reviewing developments since the last CMC meeting in May, Agama pointed to the upgrade of Nigeria’s sovereign credit rating and the country’s exit from the Financial Action Task Force (FATF) grey list as key factors that have improved market sentiment. He noted that headline inflation moderated to 16.05 percent year-on-year in October, the lowest since March 2025, describing the trend as supportive of investment inflows.
He reported strong activity in capital-raising between April and October, with approvals granted for large transactions across the debt, equity and commercial paper segments. Among them are the N500 billion Climate Funding SPV and the N200 billion Elektron Finance bond, which he said reflect growing appetite for infrastructure and sustainability-linked instruments.
The commercial paper market remained vibrant, with more than N753 billion issued across manufacturing, energy, agriculture and other sectors. “The volume of transactions approved during the period shows sustained confidence in our regulatory environment,” he said.
Agama acknowledged that November tested the market’s resilience when the Nigerian Exchange recorded its steepest monthly loss on record. Market capitalization shed N6.54 trillion, while the All-Share Index declined by almost 7 percent. He attributed the drop to investor profit-taking ahead of the proposed 30 percent capital gains tax, weaker sentiment in banking stocks, and uncertainty around policy developments and global conditions.
He added that “the market has since begun to recover following assurances on fiscal and tax policy,” and remains positive on a year-to-date basis.
Beyond market performance indicators, Agama detailed major initiatives to broaden participation through education and financial literacy. He disclosed that capital market studies have now been incorporated into the national secondary school curriculum following collaboration with the Nigerian Educational Research and Development Council. At the tertiary level, the SEC partnered with Nnamdi Azikiwe University for a conference centered on unlocking SME access to market-based funding.
Regionally, Nigeria is strengthening its leadership in non-interest finance. The Commission recently hosted a delegation from the Bank of Ghana to share insights on regulatory frameworks for Islamic capital markets. Agama referenced the success of Nigeria’s sovereign Sukuk programme, which has grown to N1.4 trillion, and confirmed that preparations are underway for a Municipal Bond and Sukuk Summit expected in the first quarter of 2026.
In the commodities and derivatives ecosystem, the SEC is updating commodity standards with the Standards Organisation of Nigeria, collaborating with insurance brokers to improve risk-mitigation mechanisms, and working with the Ministry of Solid Minerals to support mining companies seeking capital market financing. Discussions with the Central Bank of Nigeria are also ongoing to grant liquidity status to warehouse receipts. At the same time, the Commission is stepping up inspections of commodity exchanges and conducting financial reviews to strengthen oversight.
The Commission is also drafting rules under the Investments and Securities Act (ISA) 2025 to support commodity exchanges, collateral managers, warehouse operators and warehouse receipt issuers. Engagements with exchanges such as Gezawa and NCX have helped revive their operations, while study tours of other markets are informing updates to the regulatory framework.
Agama said the derivatives market will benefit from a real-time surveillance system being developed with stakeholders. Updated rules on central counterparties, derivatives trading, online foreign exchange and NG Clearing operations have been submitted to the Rules Committee, while a new systemic risk management rule is being drafted to require stronger governance controls across regulated entities.
On technology adoption, the SEC DG noted that the Digital Transformation Portal is already operational, enabling capital market operators to submit applications and documents online and track approvals. A commercial paper issuance module is live, and automation of quarterly and annual returns is progressing. He added that the Commission is upgrading its IT infrastructure and strengthening cybersecurity structures to support these reforms.
He presented findings from the Technology Adoption Survey of May 2025, which showed increased uptake of cloud computing and cybersecurity solutions but limited deployment of artificial intelligence, blockchain and big data. While adoption of advanced tools currently remains below 10 percent, he said more than 70 percent of market operators plan to adopt these technologies within three years. Key challenges include high deployment costs, limited technical talent and difficulties integrating new systems with legacy infrastructure.
Agama stressed that technology must be deployed responsibly. “Innovation must be matched with ethics,” he said. “Safeguarding investor data, ensuring market integrity and maintaining operational resilience remain paramount. These are the building blocks of trust.”
He announced that the SEC will introduce a Harmonized Corporate Governance Reporting Template for public companies to simplify disclosures and reduce compliance duplication. The unified template will align SEC requirements with the Nigerian Code of Corporate Governance 2018 and the Business Facilitation Act of 2022.
Looking ahead, the renewal of registration for capital market operators will run from January 1 to 31, 2026, while electronic receipt and processing of registration applications will begin in the first quarter of 2026.
Agama closed the meeting by affirming the SEC’s commitment to shaping a market that is “resilient, transparent and driven by innovation,” adding that “a strong capital market is not built in a day; it is shaped by vision, collaboration and resilience.”
