…As SEC Unveils Broad Market Reforms
The Securities and Exchange Commission (SEC) Nigeria has announced a series of wide-ranging reforms aimed at strengthening market efficiency, deepening investor confidence, and accelerating the digital transformation of Nigeria’s capital market.
The Director-General of the commission, Dr. Emomotimi Agama, unveiled the initiatives during the second Capital Market Committee (CMC) meeting for 2025, where he also confirmed Nigeria’s move toward a T+1, and eventually T+0 settlement cycle.
In his address at the event, the investment expert noted that the transition from T+3 to T+2 settlement for equities, implemented on November 28, marked a major milestone for the Nigerian capital market and aligned it more closely with global best practice, adding that shorter settlement cycles will enhance liquidity, reduce counterparty risk, and accelerate capital reinvestment.
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According to him, the reform now applies across the Nigerian Exchange, NASD OTC Securities Exchange, and Lagos Commodities and Futures Exchange.
Agama outlined broader market developments since the last CMC meeting in May this year as including the upgrade of Nigeria’s sovereign credit rating and the country’s removal from the FATF grey list.
He explained that these achievements had boosted investor confidence and improved prospects for capital inflows. Inflation has also moderated, with the headline rate easing to 16.05 per cent year-on-year in October, the lowest level since March 2025.
Also, the Director-General reported strong capital-raising activities between April and October, with significant transactions approved across debt, equity, and commercial paper markets, adding that some of the SEC’s notable programmes include the N500bn Climate Funding SPV and the N200bn Elektron Finance bond, reflecting growing investor interest in infrastructure and sustainable finance.
While noting that the commercial paper market remained active, with over N753bn issued across sectors such as manufacturing, energy, and agriculture, Agama said these figures demonstrated sustained confidence in the market’s regulatory framework.
Despite these positives, he recalled that the market faced headwinds in November when the Nigerian Exchange recorded its steepest monthly decline on record as market capitalization fell by N6.54trn, while the All-Share Index dropped nearly 7 per cent.
The investment expert noted that the downturn was driven by profit-taking ahead of the planned 30 per cent Capital Gains Tax, weakened sentiment in banking stocks, and broader policy and global uncertainties.
However, Agama explained that the market hds since shown resilience, with modest recovery following government reassurances on fiscal and tax policy, and remains significantly positive year-to-date.
To consolidate on the market’s recent gains, the Director-General disclosed that the commission was intensifying its market development and financial inclusion efforts through education-based initiatives, including the integration of capital market studies into the national secondary school curriculum in collaboration with the Nigerian Educational Research and Development Council (NERDC).
For instance, he said that at the tertiary level, the Commission partnered with Nnamdi Azikiwe University for a conference focused on leveraging capital market opportunities for SME growth and that
regionally, the SEC continued to reinforce Nigeria’s leadership in non-interest finance.
Agama explained that the Commission recently engaged a Bank of Ghana delegation on regulatory frameworks for non-interest capital markets, highlighting Nigeria’s N1.4trn sovereign Sukuk issuances and the growth of Islamic mutual funds. Planning is also underway for a Municipal Bond and Sukuk Summit scheduled for the first quarter of 2026.
On the management’s ongoing efforts to deepen the commodities and derivatives ecosystem, the SEC boss maintained that the commission was strengthening its collaborating with the Standards Organisation of Nigeria to update commodity standards, working with insurance brokers to enhance risk mitigation, and partnering with the Ministry of Solid Minerals to unlock funding for mining companies.
Also, he said the commission was also engaging the Central Bank of Nigeria to secure liquidity status for warehouse receipts while strengthening oversight of commodity exchanges through inspections and financial reviews.
The Director-General further clarified that the commission was advancing new rules under the Investments and Securities Act (ISA) 2025 to support commodity exchanges, collateral managers, warehouse operators, and warehouse receipt issuers, adding that study tours of exchanges and clearing agencies are informing updated regulatory frameworks, while work continues on harmonizing rules to align with ISA mandates.
This is even as he disclosed that engagements with commodity exchanges such as Gezawa and NCX had also helped revive their operations.
In the derivatives market, he explained that the commission was collaborating with stakeholders to deploy a real-time surveillance system to reinforce market integrity, noting that updated rules on central counterparties, derivatives trading, online forex, and NG Clearing operations have been submitted to the Rules Committee and that a draft systemic risk management rule is also being developed to require stronger risk governance frameworks across regulated entities.
Agama highlighted the Commission’s technology-driven regulatory reforms, including automation through the Digital Transformation Portal, which now allows capital market operators to submit applications, upload documents, and track approvals online. A commercial paper issuance module has been launched, with automation of quarterly and annual returns underway. The SEC is upgrading IT infrastructure and strengthening cybersecurity to support these reforms.
He also presented findings from the Technology Adoption Survey conducted in May 2025, which revealed that while cloud computing and cybersecurity tools are gaining traction, adoption of advanced technologies such as artificial intelligence and big data remains below 10 percent. Yet more than 70 percent of firms plan to adopt AI, blockchain, and regulatory technology within three years. Challenges include high implementation costs, skill shortages, and legacy system integration.
Agama stressed that innovation must go hand-in-hand with ethical and responsible deployment, reminding operators that safeguarding investor data, preventing market abuse, and maintaining operational resilience are essential to building trust—the foundation of any capital market.
He hinted that the SEC would implement a Harmonized Corporate Governance Reporting Template for public companies to streamline disclosures, eliminate duplication, and reduce compliance burdens. The template will unify reporting across SEC regulations, the Nigerian Code of Corporate Governance 2018, and the Business Facilitation Act 2022.
Looking ahead, the Director-General revealed that the renewal of registration for capital market operators would be from January 1 to 31, 2026, while electronic receipt and processing of registration applications will commence in the first quarter of 2026.
Agama concluded his address by restating the SEC’s commitment to building a resilient, transparent, and innovation-driven capital market that can serve as a catalyst for sustainable economic growth, guided by the principle that “a strong capital market is not built in a day; it is shaped by vision, collaboration, and resilience.”
