The Securities and Exchange Commission (SEC) has intensified efforts to enforce strict delivery and payment discipline among stockbrokers, custodians, settlement banks and the Central Securities Clearing System (CSCS) Plc as Nigeria adjusts to the newly introduced T+1 settlement cycle.

The commission said the move is aimed at achieving a sustained near-zero trade failure rate in the second half of 2026, strengthening investor confidence and improving the efficiency of the country’s capital market.

Director-General of the SEC, Dr Emomotimi Agama stated that the early results from the T+1 settlement framework introduced last month have been encouraging, adding that the Commission is targeting at least one full quarter of seamless settlement performance to demonstrate that the new system is working effectively.

He said the SEC is also working to ensure that foreign investors can complete foreign exchange conversion and funding transactions within the shorter settlement timeline without the need for pre-funding.

According to him, the commission is collaborating with the Central Bank of Nigeria (CBN), custodians and settlement banks to support same-day foreign exchange execution and confirmation for portfolio investment transactions.

Agama said the Certificate of Capital Importation (CCI) process also requires urgent modernisation to reflect the realities of the T+1 settlement regime.

He explained that the process should be fully digital, timely and predictable to guarantee smooth entry and exit for foreign investors, adding that the Commission has already engaged the CBN on the proposed reforms.

Speaking on FTSE Russell’s decision to monitor Nigeria’s market during the transition to T+1 settlement, Agama said the review is a normal practice whenever a market introduces major structural reforms.

He pointed out that the assessment will determine whether the shortened settlement cycle operates efficiently, particularly for foreign portfolio investors.

He expressed optimism about the outlook for the capital market despite expectations that investors may become more selective after the strong rally recorded in the first half of the year.

Agama noted that the Nigerian Exchange posted a 47.4 per cent gain during the period and said a phase of market consolidation would be healthy.

According to him, bank recapitalisation, a robust pipeline of new listings, improving foreign investor participation and resilient corporate earnings will continue to support growth in the equities market.

He also stated that easing inflation and attractive yields have created favourable conditions in the fixed-income market, with positive real returns across much of the yield curve.

He said sovereign, sub-national and corporate debt issuances, including infrastructure and green finance instruments, are expected to remain active.

The SEC boss described the implementation of the Investments and Securities Act (ISA) 2025 as one of the most significant reforms in the Nigerian capital market.

He said the law strengthens the Commission’s enforcement powers, brings digital assets under regulation, criminalises Ponzi schemes with tougher sanctions and enhances investor protection.

According to him, investors should expect further implementation of the commission’s capital market liquidity roadmap, continued recapitalisation of market operators, stronger environmental, social and governance disclosure standards, greater technology-driven market supervision and broader admission of regulated digital asset products.