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By Godswill Michael
The Nigerian capital market will transition to a T+1 settlement cycle for equities and commodities transactions effective June 1, 2026, as part of efforts to modernise market operations, enhance efficiency, and align with global best practices.
The announcement was made by the Securities and Exchange Commission in a notice issued on Tuesday, detailing the framework and implementation guidelines for all capital market stakeholders.
Under the new regime, all eligible trades executed in the Nigerian capital market will settle one business day after the trade date, replacing the current T+2 cycle where settlement takes two business days.
The Commission stated that the migration forms part of its ongoing market modernisation 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.”
According to the SEC, Friday, May 29, 2026, will be the final trading day under the existing T+2 framework, while trades executed on May 29 and June 1 will both settle on June 2, 2026, to ensure a smooth transition process.
“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,” the Commission stated.
The SEC noted that all trades executed from June 1 onward would automatically fall under the T+1 settlement structure.
The Commission urged market participants to review and align their operational systems, controls, workflows, and reconciliation processes ahead of the implementation date to avoid disruptions.
“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,” it added.
The transition places Nigeria among a growing list of countries adopting faster securities settlement systems. The United States moved to T+1 settlement in May 2024, while Canada and Mexico have also implemented similar frameworks. India has equally advanced toward shorter settlement cycles and is currently piloting instantaneous settlement for selected transactions.
The move is expected to improve liquidity and reduce risks associated with delayed settlements in the Nigerian market. Retail investors are also expected to benefit from quicker access to proceeds from share sales, while institutional investors and custodians will need to strengthen their back-office infrastructure and reconciliation systems to comply with the new framework.