Nigeria’s capital market is set for a major operational shift as the Securities and Exchange Commission (SEC) has announced plans to migrate to a T+1 settlement cycle for equities and commodities transactions, effective Monday, 1 June 2026.
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In a notice published on 18 May 2026, the Commission outlined a comprehensive framework to guide capital market operators and stakeholders ahead of the transition, which is aimed at enhancing efficiency, transparency, and global competitiveness.
The SEC said the move forms part of its broader market modernisation drive, designed to improve liquidity, strengthen risk management, reduce counterparty exposure, and align Nigeria’s capital market with international best practices.
Under the new framework, all eligible trades executed in the Nigerian market will be settled one business day after the transaction date, replacing the current two-day (T+2) settlement cycle.
The Commission disclosed that Friday, 29 May 2026, will mark the final trading day under the T+2 regime. Trades executed on that day, as well as those carried out on Monday, 1 June 2026, will both settle on Tuesday, 2 June 2026, creating what it described as a seamless transition window.
“From 1 June 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 full operational readiness,” the notice stated.
The SEC highlighted key implementation milestones, including the commencement of T+1 settlement for all eligible trades from 1 June, and the convergence of settlement dates for trades conducted on 29 May and 1 June.
The Commission noted that the transition places Nigeria alongside major global markets such as the United States, Canada, and Mexico, which have already adopted shorter settlement cycles. India, it added, has also made significant progress and is piloting near-instant settlement for selected trades.
For retail investors, the shift is expected to translate into faster access to proceeds from share sales, while institutional investors and custodians are required to upgrade their back-office systems and reconciliation processes to meet the new timeline.
The SEC described the reform as a significant milestone, noting that the progression from T+3 to T+2 and now T+1 within a short period demonstrates its proactive approach to building a more efficient and resilient market.
It further urged all market participants to review and align their systems, processes, and operational workflows ahead of the implementation date.
The Commission assured that it would continue to engage stakeholders and closely monitor the rollout to ensure a smooth transition, reiterating its commitment to strengthening investor confidence and positioning Nigeria as a competitive destination for global capital.
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