Nigeria’s capital market will commence a new T+1 settlement regime for equities and commodities transactions from June 1, 2026, as part of broader efforts by the Securities and Exchange Commission to modernise the market and align domestic operations with global standards.
The Commission disclosed this in a circular announcing the transition from the current T+2 settlement cycle to a T+1 framework for trades cleared and settled by the Central Securities Clearing System.
Under the new regime, all eligible trades executed in the Nigerian capital market will now be settled one business day after the transaction date, a move regulators said would improve operational efficiency, deepen liquidity, strengthen risk management, and reduce counterparty exposure across the market.
The SEC stated that the transition followed the successful implementation of the T+2 settlement cycle on November 28, 2025, noting that the latest migration represents another milestone in its ongoing capital market reform and modernization agenda.
According to the Commission, Friday, May 29, 2026, will serve as the final trading day under the existing T+2 framework, while trades executed on both May 29 and June 1 will settle on Tuesday, June 2, 2026.
Thereafter, all eligible transactions conducted from June 1 onward will operate strictly under the T+1 settlement cycle.
The SEC said the shorter settlement timeline is expected to enhance market integrity and investor confidence by accelerating the completion of securities transactions and improving the overall efficiency of ..-trade process.
Market stakeholders, including capital market operators, securities exchanges, custodians, registrars, issuers, and clearing and settlement infrastructure providers, have been directed to ensure full operational readiness ahead of the implementation date.
The Commission urged participants to review and align their systems, internal controls, operational processes, and transaction workflows to comply with the new framework and avoid disruptions during the transition period.
Industry analysts said the migration to T+1 settlement would position Nigeria among emerging and developed markets adopting faster settlement cycles to improve market competitiveness and attract greater foreign and institutional participation.
Globally, several leading financial markets, including the United States, Canada, and India, have accelerated settlement timelines in recent years as exchanges and regulators seek to reduce systemic risks and improve capital efficiency.
The SEC reiterated its commitment to sustaining reforms aimed at building a more resilient, transparent, and globally competitive Nigerian capital market, adding that it would continue to engage stakeholders and closely monitor the implementation process to ensure a seamless transition.
