The Securities and Exchange Commission (SEC) of Nigeria has set an ambitious milestone for the country’s capital market, targeting a sustained near-zero trade fail rate under the newly implemented T+1 (Trade plus one day) settlement framework by the second half of 2026 (H2 2026). This regulatory objective was disclosed by the Director-General of the SEC, Dr. Emomotimi Agama, in a statement released on Sunday, highlighting the commission’s resolve to foster a highly efficient and world-class trading environment.
Under the T+1 settlement cycle, securities transactions are cleared and settled just one business day after the trade execution date. This transition represents a significant leap forward from the previous T+2 cycle, accelerating capital turnaround times, boosting market liquidity, and significantly reducing systemic and counterparty risks. However, compressing the settlement window demands flawless operational execution from all market participants, including brokers, custodians, and clearing houses.
According to Dr. Agama, the SEC is intensively focused on ensuring that the market infrastructure is robust enough to handle the accelerated timeline without disruptions. Achieving a near-zero trade fail rate requires a comprehensive overhaul of market operations. The SEC is working closely with key stakeholders to implement advanced technological systems, automate post-trade processes, and establish strict compliance guidelines. These measures are designed to ensure that securities and funds are seamlessly matched and delivered within the shortened timeframe.
“Our goal is to build a resilient, transparent, and highly efficient market that inspires confidence among both domestic and international investors,” Dr. Agama stated. He emphasized that minimizing trade failures is critical to maintaining market integrity. As H2 2026 approaches, the commission plans to conduct rigorous dry runs, industry-wide capacity building, and continuous system audits to identify and mitigate potential bottlenecks before they impact active trading.
By striving for a near-zero trade fail rate under the T+1 framework, Nigeria aligns itself with global best practices observed in advanced financial hubs like the United States and India. This strategic move is expected to elevate the competitiveness of the Nigerian capital market, lower transaction costs, and attract greater foreign portfolio investments, driving long-term economic growth.
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