SEC unveils major reforms to boost Nigeria’s capital market efficiency, Digital Transformation

By Seun Ibiyemi

The Securities and Exchange Commission (SEC) has announced a wide-ranging set of reforms aimed at enhancing market efficiency, deepening investor confidence, and accelerating the digital transformation of Nigeria’s capital market.

The initiatives were unveiled by SEC Director-General, Emomotimi Agama, during the second Capital Market Committee (CMC) meeting for 2025, where he also confirmed Nigeria’s roadmap toward a T+1—and eventually T+0—settlement cycle. 

The transition from T+3 to T+2, implemented on November 28, marks a significant alignment with global best practices, intended to boost liquidity, reduce counterparty risk, and accelerate capital reinvestment. 

The reforms cover the Nigerian Exchange, NASD OTC Securities Exchange, and Lagos Commodities and Futures Exchange.

Agama highlighted other market milestones, including Nigeria’s upgraded sovereign credit rating and removal from the FATF grey list, achievements that have bolstered investor confidence. 

Inflation has moderated to 16.05 percent year-on-year as of October, the lowest since March 2025. Strong capital-raising activity has been observed, with notable issuances such as the N500bn Climate Funding SPV and N200bn Elektron Finance bond, alongside over N753bn in commercial paper across manufacturing, energy, and agriculture sectors.

Despite these positives, the Nigerian Exchange experienced its steepest monthly decline in November, with market capitalization falling by N6.54 trillion and the All-Share Index dropping nearly 7 percent. 

Agama attributed the decline to profit-taking ahead of the planned 30 percent Capital Gains Tax, weakness in banking stocks, and broader policy and global uncertainties. However, the market has since shown resilience and remains positive year-to-date.

The SEC is intensifying efforts in financial inclusion and education, integrating capital market studies into secondary school curricula in collaboration with the Nigerian Educational Research and Development Council and hosting university-level conferences to leverage capital market opportunities for SME growth. 

Regionally, the SEC is reinforcing Nigeria’s leadership in non-interest finance and planning a Municipal Bond and Sukuk Summit in Q1 2026.

Agama also outlined ongoing initiatives to deepen the commodities and derivatives ecosystem, including updated commodity standards, risk mitigation frameworks, and funding support for mining companies. 

Technology-driven reforms through the SEC Digital Transformation Portal now enable online submissions, application tracking, and commercial paper issuance, with further automation underway.

Findings from the May 2025 Technology Adoption Survey revealed growing adoption of cloud computing and cybersecurity tools, though AI and blockchain usage remains below 10 percent. Over 70 percent of firms plan to implement advanced technologies within three years, despite challenges such as cost, skill gaps, and legacy system integration.

Other key reforms include the introduction of a Harmonized Corporate Governance Reporting Template for public companies to streamline disclosures and reduce compliance burdens. 

Renewal of registration for capital market operators is scheduled for January 1–31, 2026, with electronic processing set to begin in Q1 2026.

Agama concluded by reaffirming the SEC’s commitment to a resilient, transparent, and innovation-driven capital market, emphasizing that “a strong capital market is not built in a day; it is shaped by vision, collaboration, and resilience.”