The Securities and Exchange Commission (SEC) has announced the transition of Nigeria’s capital market to a T+1 settlement cycle for equities and commodities transactions, effective June 1, 2026.
The new settlement framework will apply to trades cleared and settled by the Central Securities Clearing System, marking a major step in the modernization of the country’s financial markets.
According to the SEC, Friday, May 29, 2026, will be the final trading day under the existing T+2 settlement structure introduced in November 2025, while trades executed on May 29 and June 1 will settle on Tuesday, June 2, 2026.
Under the new arrangement, eligible trades will now settle one business day after the transaction date, replacing the current T+2 system.
The regulator said the migration is designed to improve efficiency, strengthen risk management systems, reduce counterparty exposure and enhance market liquidity, while also aligning Nigeria’s capital market with international best practices already adopted in major global markets, including the United States and parts of Asia.
The Commission directed capital market operators, exchanges, custodians, registrars, issuers and settlement infrastructure providers to ensure full operational readiness ahead of the implementation date.
It also noted that the transition reflects a broader global shift toward faster trade settlement systems aimed at improving market resilience and reducing systemic risks.
Shorter settlement cycles, according to the SEC, reduce the time between trade execution and final settlement, thereby lowering exposure to market volatility, operational failures and counterparty default risks. However, it warned that the shift places additional pressure on brokers, custodians and technology providers to upgrade systems to avoid failed trades or disruptions.
“The migration to a T+1 settlement cycle forms part of the Commission’s ongoing market modernization initiatives aimed at enhancing market efficiency, strengthening risk management, reducing counterparty exposure, improving liquidity, and aligning the Nigerian capital market with international standards and global best practices,” the SEC said.
Market analysts have said the transition could strengthen investor confidence and make the Nigerian market more attractive to both local and foreign institutional investors.
The SEC added that it will continue stakeholder engagement and monitor compliance throughout the transition period as capital market operators complete system upgrades and operational adjustments ahead of implementation.
Nigeria’s shift to a T+1 settlement cycle marks a significant structural reform for the capital market, following earlier transitions from T+3 to T+2, which the regulator says reflects its commitment to building a more efficient and globally competitive financial system.
