Barbara Bako, Abuja.
The Securities and Exchange Commission has announced that Nigeria’s capital market will transition to a T+1 settlement cycle for equities and commodities transactions from June 1, 2026, as part of efforts to modernise the market and align with global standards.
The Commission in a statement issued on Tuesday said the new framework would reduce the settlement period for eligible trades from the current two-business-day cycle (T+2) to one business day after trade execution.
Under the transition arrangement, Friday, May 29, 2026, will be the final trading day under the T+2 cycle, while trades executed on both May 29 and June 1 will settle on June 2, creating what the SEC described as a “seamless convergence window” for the migration.
The Commission said the move was designed to improve market efficiency, strengthen risk management, reduce counterparty exposure, boost liquidity, and position the Nigerian capital market in line with international best practices.
According to the SEC, all capital market operators, securities exchanges, custodians, registrars, issuers, and clearing and settlement infrastructure providers are expected to ensure operational readiness before the commencement date.
“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 notice stated.
The Commission noted that the reform places Nigeria alongside major global markets such as the United States, Canada and Mexico, which adopted T+1 settlement cycles in recent years. It also referenced India’s ongoing efforts to shorten settlement timelines through pilot instantaneous settlement systems.
Market analysts say the shorter settlement cycle is expected to benefit retail investors through faster access to proceeds from share sales, while institutional investors and custodians may need to upgrade back-office systems and reconciliation processes to meet the new timeline.
The SEC added that the transition from T+3 to T+2 and now to T+1 within a relatively short period underscores its commitment to building a more efficient, resilient, and globally competitive capital market.
The Commission said it would continue engaging stakeholders to ensure a smooth implementation process and maintain investor confidence in the market.
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