The Securities and Exchange Commission has fixed June 1, 2026, for the full transition of Nigeria’s capital market to a T+1 settlement cycle for equities and commodities transactions, a move aimed at speeding up trade settlements and improving market efficiency.
Under the new framework, all eligible transactions executed on the Nigerian Exchange will now settle one business day after trading instead of the current two-day settlement window.
In a circular released on Tuesday, the SEC said the reform is part of broader efforts to modernise the Nigerian capital market, reduce transaction risks, improve liquidity and align the country with global trading standards already adopted in markets like the United States, Canada and Mexico.
The commission explained that Friday, May 29, 2026, will be the final trading day under the current T+2 settlement system, while trades carried out on both May 29 and June 1 will settle simultaneously on Tuesday, June 2, to ensure a smooth transition process.
“From 1 June onwards, 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 SEC stated.
The regulator noted that the transition is designed to strengthen investor confidence, improve operational efficiency and reduce counterparty exposure in the market.
For retail investors, the new settlement structure means faster access to funds after selling shares, while institutional investors and custodians are expected to immediately upgrade their systems and operational processes to avoid settlement delays.
Analysts say the move signals Nigeria’s push to close the infrastructure gap between its capital market and developed economies, potentially boosting foreign investor participation.
“Market participants are expected to review and align their systems, processes, controls and operational workflows ahead of the implementation date,” the commission added.
The SEC also assured stakeholders that it would continue engaging operators to ensure a seamless migration to the faster settlement system.
