The Securities and Exchange Commission has announced the transition to a T+1 settlement cycle for equities and commodities transactions in the Nigerian capital market, effective June 1, 2026.
The commission said the move is part of ongoing efforts to modernise the market, improve efficiency and align Nigeria’s capital market operations with global standards.
In a circular issued on Tuesday, the SEC explained that under the new framework, all eligible trades executed on the Nigerian exchange will now settle one business day after the transaction date, replacing the current two-business-day settlement cycle.
According to the commission, the final trading day under the existing T+2 settlement structure will be Friday, May 29, 2026.
“Trades executed on both May 29 and June 1, 2026, will settle on the same date, Tuesday, June 2, 2026, creating a seamless convergence window that supports an efficient transition,” the SEC stated.
The commission said the migration to T+1 is designed to enhance trading efficiency, strengthen risk management, reduce counterparty exposure, improve market liquidity and boost investor confidence.
It directed capital market operators, securities exchanges, clearing houses, custodians, registrars and other stakeholders to ensure operational readiness before the implementation date.
The development brings Nigeria closer to global market practices, following similar transitions by countries such as the United States, Canada and Mexico.
Analysts said the shortened settlement timeline would provide investors with quicker access to cash from share sales while improving the attractiveness of the Nigerian market to foreign investors.
The SEC also assured stakeholders that it would continue monitoring the implementation process to ensure a smooth transition and strengthen the integrity of the Nigerian capital market.
