SEC announces transition to T+1 settlement cycle in Nigerian capital market

Business

ABUJA, Nigeria (NPA) — The Securities and Exchange Commission (SEC) has announced that Nigeria’s capital market will adopt a T+1 settlement cycle for equities and commodities transactions starting Monday, June 1, 2026, marking a major step toward faster and more efficient trade settlements.

In a public notice issued on May 14, 2026, the Commission said the move follows the successful implementation of the T+2 settlement cycle in November 2025 and forms part of its ongoing market modernization drive aimed at enhancing efficiency, reducing risk, and aligning Nigeria’s capital market with global best practices.

Under the new system, all eligible trades executed in the Nigerian capital market will now settle one business day after the trade date (T+1). The SEC explained that the transition will improve liquidity, minimize counterparty exposure, and strengthen investor confidence.

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Implementation Highlights

• The T+1 cycle takes effect June 1, 2026.
• Friday, May 29, 2026, will be the last trading day under the T+2 cycle.
• Trades executed on May 29 and June 1 will both settle on Tuesday, June 2, 2026.
• All subsequent trades from June 1 onward will follow the T+1 settlement rule.

The SEC urged capital market operators, exchanges, clearing and settlement infrastructure providers, registrars, issuers, and other stakeholders to ensure full operational readiness and compliance ahead of the transition.

The Commission reaffirmed its commitment to market efficiency, investor protection, and global competitiveness, noting that the change will foster a more resilient and transparent trading environment.