Nigerian Capital Market Transitions to T+1 Settlement Cycle

The Nigerian capital market will officially transition to a one-day (T+1) settlement cycle on Monday, June 1, 2026, cutting the time required to finalise securities and commodities transactions in half.

The mandate, formally announced by the Securities and Exchange Commission (SEC) requires all eligible trades to settle exactly one business day after the trade date, replacing the previous two-day (T+2) standard.

The SEC noted that the journey from T+3 to T+2, and now to T+1, took less than seven months, highlighting an aggressive push toward market modernisation.

To ensure a seamless launch, the SEC has outlined a unique convergence window for the transition.

Friday, May 29, 2026, will serve as the final trading day under the old T+2 system, consequently, trades executed on both May 29 and Monday, June 1, will visually converge and settle on the exact same day: Tuesday, June 2, 2026.

From June 1 onward, all transactions will strictly operate under the 24-hour T+1 timeline.

The migration is being coordinated on the technical front by the Central Securities Clearing System Plc (CSCS), the market’s central depository, alongside major securities exchanges, trade associations, and brokerage firms.

According to financial regulators, the compressed timeline will immediately benefit retail investors by providing quicker access to cash proceeds from share sales.

For institutional players and custodians, the shift requires an immediate reconfiguration of back-office systems and reconciliation workflows to meet the faster execution demands.

The Managing Director and Chief Executive Officer of CSCS, Mr. Shehu Yahaya Shantali, stated that the infrastructure overhaul positions Nigeria alongside top-tier international frameworks.

“The transition to T+1 represents another important milestone in the evolution of Nigeria’s capital market infrastructure.

“It reflects the market’s readiness to embrace reforms that enhance efficiency, strengthen investor confidence, improve liquidity, and align Nigeria more closely with leading global markets,” Shantali said.

Shantali credited the market-wide readiness to months of intensive system upgrades and joint planning spearheaded by the SEC and the T+1 Implementation Plan Committee.

By compressing the settlement cycle, the SEC aims to reduce counterparty exposure, lower systemic settlement risks, and boost overall market liquidity.

The regulator emphasised that this reform bridges the infrastructure gap with developed economies, following the United States, Canada, and Mexico, which migrated to T+1 in May 2024, as well as India’s recent strides toward instantaneous settlement.

The SEC stated it will continue to monitor operational workflows and engage market participants through its automated division (emidivision@sec.gov.ng) to ensure an orderly transition.

To formalise the launch, CSCS and the Nigerian Exchange Group (NGX) will host a joint Special Closing Gong ceremony on June 1 at the NGX House in Lagos, drawing together institutional heavyweights and regulatory bodies to mark the start of the live environment.