The Securities and Exchange Commission (SEC) said it will begin a one-business-day settlement cycle (T+1) for equities and commodities transactions in Nigeria’s capital market from June 1, 2026.
The move will replace the current two-day settlement system, the Commission announced in a statement on Tuesday, May 19.
It noted that the new framework is part of it broader market modernisation drive aimed at improving efficiency, reducing risks and aligning Nigeria’s capital market with global standards.
Under the new system, eligible trades executed in the Nigerian capital market will be settled one business day after the trade date, stressing that the transition is designed to improve market efficiency, strengthen risk management, reduce counterparty exposure and boost liquidity.
“Importantly, the final trading day under the existing T+2 cycle will be May 29, 2026,” SEC said.
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It explained that trades executed on May 29 and June 1 will both be settled on June 2, creating what it described as a “seamless convergence window” for the transition.
“From June 1 onward, all trades will operate under the T+1 framework, and it is essential for all capital market operators, securities exchanges, clearing and settlement infrastructure providers, custodians, registrars, issuers, and other stakeholders to ensure they are fully operationally ready by the commencement date,” SEC said.
The reform places Nigeria among markets moving toward faster settlement cycles.
The United States adopted T+1 settlement in May 2024, alongside Canada and Mexico, while India has been advancing shorter settlement windows and testing instant settlement for selected trades.
For investors, the change means faster access to proceeds from share sales. However, institutional investors, custodians and other market operators will need to adjust their operational systems and reconciliation processes before the rollout date.
The SEC said the move reflects Nigeria’s effort to close the infrastructure gap with more advanced markets and strengthen the attractiveness of the country’s capital market to foreign investors.
The migration also marks another milestone in Nigeria’s settlement reforms, following the transition from T+3 to T+2 and now to T+1 within less than seven months.
“Market participants are expected to review and align their systems, processes, controls, and operational workflows ahead of the implementation date.
“The Commission will continue to engage stakeholders and monitor the implementation process to ensure an orderly and seamless transition.
“We remain committed to strengthening market integrity, enhancing investor confidence, and fostering the development of a modern, resilient, and globally competitive Nigerian capital market,” SEC added.
It urged market participants to complete operational adjustments before June 1 to ensure a smooth transition to the faster settlement regime.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X