SEC: Exit from Grey List, T+2 Reaffirms Nigeria as investment Destination

Kayode Tokede

The Director-General, Securities & Exchange  Commission (SEC), Mr. Emomotimi Agama has stated that Nigeria’s exit from the FATF gery list and the launching of the T+2 settlement cycle makes Nigeria a great investment destination.

He stated this at a press briefing of on official launch of the T+2 settlement in Lagos during the weekend.

Nigeria officially transitioned from a T+3 to a T+2 settlement cycle, marking a major advancement in modernising its capital market.

Represented by the Executive Commissioner, Operations, SEC, Mr Bola Ajomale, he commended Managing Director of Central Securities Clearing System (CSCS), Haruna Jalo-Waziri for his lofty vision and tenacity in bringing the vision to fruition.

He stated that,  “This is a good development and it will challenge us to develop sharper surveillance and build capacity to detect errors faster.

“As Nigeria exits the grey list, this move is a step in reaffirming to the world that Nigeria is a great investment destination.  Again, people must be clear that this change is only in time, we are not changing the order of things.”

“With this development, the dispute resolution department in SEC will be functional with additional manpower and the monitoring department will be further empowered,” he said.

Speaking earlier, the Chairman of the CSCS Plc, Mr Temi Popoola, said the shift represented a strategic step toward global best practice.

Popoola described the transition as a historic milestone that would strengthen liquidity, reduce risk and enhance investor confidence.

He said the move signalled Nigeria’s commitment to building a market anchored on efficiency, transparency and competitiveness.

According to him, the new cycle layed a stronger foundation for foreign investor participation and supports the national economic target of a $1 trillion economy.

Popoola said the shift positioned Nigeria to align with global reforms, including advanced markets moving toward T+1 settlement cycles.

“The transition to T+2 settlement cycle is not merely an operational achievement, it is a strategic signal. It’s a signal that Nigeria is committed to building a market that is anchored on efficiency, transparence and global competitiveness.

“This positions Nigeria to participate effectively in the next generation of capital market innovation. By shortening settlement cycles, we have strengthened the foundation upon which future innovations will be built, and we have signaled clearly to local and global investors, participants, and the international financial community that Nigeria is ready for the next phase of capital market advancement,” he said.

Popoola explained that the achievement reflected months of coordinated work among regulators, operators, intermediaries and technology partners across the value chain.

He commended the commission for providing leadership and the market operators for demonstrating operational readiness during the transition.

Popoola also acknowledged the T+2 Steering Committee for addressing the technical and regulatory requirements needed to safeguard market integrity.

Also speaking, Jalo-Waziri, said the transition followed extensive stakeholder engagement, testing, capacity building and market-wide awareness activities.

Jalo-Waziri said the move was supported by major technology upgrades, including the recent migration to IBM Power 10 systems, which was completed seamlessly.

He recalled that the market once relied on manual processes and physical share certificates that delayed settlement and increased counter-party risk.

Jalo-Waziri said post-trade processes were now 95 per cent automated, to delivering faster settlement, lower risk and improved reliability for all market participants.

He commended the CSCS board and risk-management teams for approving key investments and ensuring full compliance with global settlement standards.

“The new system offers higher processing speed, improved automation and enhanced market connectivity. Investors, brokers and custodians can now enjoy faster settlement, lower counter-party risk and a more predictable post-trade environment,” he said.