A new era of global alignment
On June 1st, 2026, the Nigerian Exchange (NGX) implemented a T+1 settlement cycle, meaning all trades in our Stock market are now settled within 24 hours. This milestone came shortly after trading hours were extended from 9:30 a.m.–2:30 p.m. to 9:00 a.m.–4:00 p.m. The longer trading window allows the NGX to overlap with European markets at closing and align with the opening of the New York market.
These reforms have brought Nigeria’s stock market in line with other leading global exchanges. By adopting T+1 settlement, Nigeria joins markets such as the U.S., Canada, and India. This alignment is expected to make the market more attractive to foreign portfolio investors and increase foreign participation.
The FTSE Russell Index has already indicated that Nigeria will be reclassified as a Frontier Market in September 2026, reversing the downgrade it suffered in 2023.
The implications are profound: faster transaction cycles, enhanced liquidity, expanded participation, and increased capital inflows in ways not previously seen.
Modernisation and the 10 year master plan
This structural modernisation is the result of deliberate planning that began with a 10-Year Capital Market Master Plan, inaugurated in 2015.
As one of her final acts as director-general of the Securities and Exchange Commission (SEC), Arunma Oteh initiated and inaugurated a committee to design the plan.
She appointed Mr. Adedotun Sulaiman as chairman. Sulaiman, a former chairman of Accenture Nigeria and a man of deep intellect, had previously chaired the SEC-appointed Capital Market Committee in 2008, which was tasked with shielding Nigeria from the contagion of the U.S. financial crisis. Unfortunately, government inaction at the time, meant Nigeria’s market bore the brunt of the crash.
For the 2015 Master Plan, Mr. Sulaiman led a group of talented market operators, supported by diaspora Nigerians with Wall Street experience. It was a broad stakeholder effort, structured into 13 sub-committees, including:
- Market Structure (chaired by me)
- Product Development
- Non-Interest Finance
- Financial Literacy
- Corporate Governance
- Bond Market Development
- Regulatory Framework
- Technology and Innovation
- Investor Protection
- Collective Investment Schemes
- Market Infrastructure
- Commodity Exchanges
- Capacity Building
The Implementation Committee, headed by a respected market operator Mr. Olutola Mobolurin, also adopted a broad approach, involving SEC, CBN, the Ministry of Finance, market operators, academics, and legal experts.
Key milestones and future outlook
So far, more than 50 percent of the recommendations have been implemented. Major achievements include:
- Demutualisation of the Exchange (NSE → NGX)
- Technology modernisation, with digital operators like Bamboo emerging
- Introduction of Sukuk bonds under non-interest finance
- Legislative assent to the new Investment and Securities Act (ISA)
- Strengthening of market infrastructure and investor protection
The new SEC leadership, under Mr. Timi Agama and Mr. Bola Ajomale deserves praise for accelerating implementation. Their purposeful approach has brought focus and momentum to reforms.
Nigeria now stands on the cusp of a capital market that can open the economy to transformative investments, creating jobs and wealth in the country’s largest financial marketplace.
- business a.m. commits to publishing a diversity of views, opinions and comments. It, therefore, welcomes your reaction to this and any of our articles via email: comment@businessamlive.com
Victor Ogiemwonyi, a retired investment banker, is a former Governing Council member of the Nigerian Stock Exchange (NSE), now Nigerian Exchange Group (NGX Group). He sent this contribution from Ikoyi, Lagos. He can be reached via comment@businessamlive.com and marketconversations.substack.com
When borrowing from my wife came in handy