Nigeria SEC sets T+1 settlement deadline

The United States — United States Securities and Exchange Commission has fixed 5:00 p.m. on the first business day after a transaction (T+1) as the settlement deadline for equities and commodities traded and settled through the Central Securities Clearing System. The clarification, issued in a circular on August 12, 2026, is part of the implementation of the T+1 settlement cycle in the Nigerian capital market. All transactions in affected securities must be fully paid by 5:00 p.m. T+1 to ensure compliance with the Delivery versus Payment (DvP) settlement procedure. Defaults by broker/dealers with insufficient funds will be managed under the CSCS Default Management Procedure. The SEC also clarified that foreign portfolio investors are not required to prefund their accounts, but capital market operators must maintain controls to ensure timely settlement. This follows earlier circulars on T+2 (June 2025) and the transition to T+1 (May 2026). The transition aims to improve settlement efficiency, reduce counterparty risk, enhance liquidity, and strengthen the competitiveness of the Nigerian capital market.