Nigeria: SEC Says FATF Grey List Exit and T+2 Adoption Strengthen Nigeria’s Investment Appeal

The Director-General of the Securities and Exchange Commission (SEC), Emomotimi Agama, has reaffirmed Nigeria’s growing attractiveness to global investors following the country’s exit from the FATF grey list and the official rollout of the T+2 settlement cycle.

Agama, represented by Executive Commissioner for Operations, Bola Ajomale, made the remarks during a press briefing in Lagos to commemorate Nigeria’s migration from a T+3 to T+2 settlement framework—an upgrade that brings the capital market closer to international standards.

He commended Central Securities Clearing System (CSCS) Managing Director, Haruna Jalo-Waziri, for driving the initiative, noting that the shortened settlement cycle will demand enhanced surveillance capacity and more efficient error detection across the market.

“This is a welcome development that strengthens market integrity,” he said. “As Nigeria exits the grey list, this transition reinforces our position as a compelling investment destination. It is important to highlight that this adjustment is purely a change in settlement time, not in market structure.”

Agama added that the SEC’s dispute resolution and monitoring functions will be further strengthened to support the new settlement regime.

CSCS Plc Chairman, Temi Popoola, described the shift to T+2 as a strategic milestone that boosts liquidity, reduces systemic risk, and enhances investor confidence. He emphasized that the transition aligns Nigeria with global reforms and supports the country’s ambition of building a $1 trillion economy.

“The move to T+2 is not just operational; it is a clear signal of Nigeria’s commitment to efficiency, transparency, and global competitiveness,” Popoola said. “Shorter settlement cycles lay a stronger foundation for innovation and deeper foreign investor participation.”

He also acknowledged the extensive collaboration among regulators, market operators, intermediaries, and technology partners, as well as the efforts of the T+2 Steering Committee in addressing the regulatory and technical prerequisites.

CSCS CEO, Haruna Jalo-Waziri, highlighted that the successful transition followed months of testing, capacity building, and stakeholder engagement. He noted that the shift was enabled by major technology upgrades, including the seamless migration to IBM Power10 systems.

Recalling the era of manual processes and physical share certificates, Jalo-Waziri said the market has now achieved 95% automation in post-trade operations, enabling faster settlement and reduced counterparty risk.

“The upgraded system delivers higher processing speeds, improved automation, and stronger market connectivity,” he noted. “Investors, brokers, and custodians will benefit from a more predictable, low-risk post-trade environment.”