The Securities and Exchange Commission has announced the transition of Nigeria’s capital market to a T+1 settlement cycle for equities and commodities transactions from June 1, 2026, reducing the current two-business-day settlement period to one business day in a move the commission described as aligning the Nigerian market with international standards and enhancing market efficiency, risk management, and liquidity.
Under the new framework, all eligible trades executed from June 1 would settle one business day after the trade date. The commission said May 29, 2026 would be the final trading day under the existing T+2 cycle, and that trades executed on both May 29 and June 1 would settle on June 2, 2026, creating a seamless convergence window for the transition.
The SEC said all capital market operators, securities exchanges, clearing and settlement infrastructure providers, custodians, registrars, and issuers needed to ensure full operational readiness before the commencement date. For retail investors, the change meant quicker access to proceeds from share sales, while institutional players and custodians were expected to reconfigure their back-office systems and reconciliation workflows.
The move follows similar transitions in the United States, Canada, and Mexico in May 2024, positioning Nigeria among markets converging toward faster settlement standards. The journey from T+3 to T+2 and now T+1 within less than seven months reflected the SEC’s proactive approach toward building a more dynamic and globally competitive capital market.
