Nigeria’s capital market will officially transition to a T+1 settlement cycle from June 1, 2026, following a directive issued by the Securities and Exchange Commission, SEC. The commission said the migration forms part of broader efforts to modernise market operations, improve liquidity, strengthen risk management, and align Nigeria’s financial market with international standards.
Under the new framework, eligible equities and commodities transactions executed within the Nigerian capital market will settle one business day after the trade date instead of the current T+2 arrangement, where settlement takes two business days. The SEC stated that the transition would apply to transactions cleared and settled through the Central Securities Clearing System, CSCS.
The commission disclosed that Friday, May 29, 2026, would be the final trading day under the existing T+2 framework. Trades executed on Friday, May 29, and Monday, June 1, will both settle on Tuesday, June 2, before full implementation of the T+1 settlement cycle begins.
According to the SEC, the shorter settlement period is expected to reduce counterparty exposure, improve operational efficiency, accelerate capital movement, and enhance investor confidence within the Nigerian capital market. The commission added that the migration aligns with global best practices increasingly adopted by major financial markets worldwide.
The transition follows the successful implementation of the T+2 framework introduced in November 2025 as part of phased reforms within Nigeria’s post-trade infrastructure. Regulators stated that the latest move represents another major milestone in strengthening the country’s financial market systems.
The Central Securities Clearing System explained that under the T+1 settlement cycle, securities purchased by investors and corresponding payments to sellers would be completed one business day after transactions are executed. The system is designed to improve transaction speed and reduce settlement risks associated with delayed processing.
The SEC directed capital market operators, securities exchanges, custodians, registrars, issuers, and clearing infrastructure providers to ensure full operational readiness before implementation. Market participants were also instructed to review transaction workflows, internal controls, operational systems, and compliance processes ahead of the transition date.
Industry analysts stated that the T+1 framework could improve market liquidity by allowing faster recycling of capital within the financial system. They also noted that quicker transaction completion may encourage stronger participation from institutional and foreign investors seeking efficient post-trade systems.
Globally, several advanced financial markets have adopted or announced migration toward T+1 settlement structures in recent years. The United States, Canada, and Mexico implemented T+1 settlement in 2024, while parts of Europe are preparing for similar transitions in 2027.
The SEC maintained that strengthening post-trade infrastructure remains important to building a resilient and globally competitive Nigerian capital market. The commission added that stakeholder engagement and continuous monitoring would continue throughout implementation of the new settlement cycle framework.
