Nigeria’s capital market will move to a faster trade settlement system from June 1, 2026, as the Securities and Exchange Commission (SEC) begins the transition from the current T+2 cycle to a T+1 settlement cycle for equities and commodities transactions cleared by the Central Securities Clearing System (CSCS).
The announcement was made in a public notice issued by the SEC on May 14, 2026, and signed by the Commission’s management. The notice explained that the new settlement framework is part of ongoing efforts to modernise the Nigerian capital market and improve its efficiency.
Under the current T+2 system, investors receive cash or securities two business days after a trade is executed. However, under the new T+1 arrangement, settlement will now take place one business day after the transaction date.
According to the SEC, the move is expected to strengthen risk management, reduce counterparty exposure, improve market liquidity, and align the Nigerian capital market with international standards and global best practices.
The Commission stated that Friday, May 29, 2026, will be the final trading day under the existing T+2 settlement cycle. It also clarified that trades executed on Friday, May 29, 2026, and Monday, June 1, 2026, will both settle on Tuesday, June 2, 2026.
From Monday, June 1, 2026, all eligible trades executed in the Nigerian capital market will automatically fall under the new T+1 settlement structure.
The SEC directed capital market operators, securities exchanges, custodians, registrars, issuers, clearing and settlement infrastructure providers, and other stakeholders to ensure their systems and operational processes are fully prepared ahead of the implementation date.
The Commission added that it would continue to engage stakeholders and monitor the implementation process to ensure a smooth transition to the new settlement cycle.
The SEC said the initiative reflects its commitment to improving investor confidence, strengthening market integrity, and supporting the development of a more resilient and globally competitive Nigerian capital market.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
