Remarks by Alhaji (Dr) Umaru Kwairanga, Group Chairman, NGX at the T+1 settlement cycle transition ceremony in Lagos.
It gives me great pleasure to welcome you all to this momentous occasion of transitioning our settlement period from T+2 to T+1.
What this means for the few that may not be versed in market jargon that all transactions in our market will now settle on the day after trading. If you buy today, your account will be debited tomorrow. If you sell today, you will get payment tomorrow. What the change means for seasoned investors and market practitioners is faster turnaround, increased liquidity and more efficiency.
The move reinforces the Nigerian market as one of the most efficient markets globally. You may recall that we were one of the first exchanges in Africa to transition from the call over system to automated trading systems. Last year we introduced a digital platform for subscription to public offers which proved highly integral to the success of the banking recapitalisation. This year alone, we have reduced the settlement days from T+3 to T +2 and we are now moving to T+1.
All these have been achieved smoothly and seamlessly because of the professionalism and dedication of our market operators and I believe the same attitude will be shown for this transition.
Let me use this occasion to also thank the Securities and Exchange Commission, especially our own DG Timi Agama and his Executive Commissioners with other Commission Staff for the cooperation and support they have always provided the NGX and CSCS, that have enabled such proactively actions and innovation. I also wish to thank my colleagues and the teams at the NGX Group and CSCS for working day and night to ensure that we met this deadline.
To our investors, I promise that we will keep looking at ways that we can make investing in the Nigerian market smooth, secure and enjoyable and we welcome your suggestions in this regard.
Thank you all once again for gracing this occasion.
Alhaji (Dr) Umaru Kwairanga
Group Chairman NGX
