The Securities and Exchange Commission (SEC) has confirmed that Friday, May 29, 2026, will be the last trading day under the current T+2 settlement cycle. This marks a pivotal shift as the Nigerian capital market prepares to adopt the faster T+1 settlement framework, designed to enhance liquidity, minimize transaction risks, and align with global operational standards.
Transition Details
Under the transition plan released by the Commission, trades executed on Friday, May 29, 2026, and Monday, June 1, 2026, will both settle on Tuesday, June 2, 2026. This arrangement precedes the full implementation of the T+1 settlement regime, which takes effect from Monday, June 1, 2026. The SEC emphasized that the new settlement structure applies to all eligible equities and commodities transactions cleared and settled by the Central Securities Clearing System (CSCS).
Modernization Milestone
The SEC stated that this migration represents another significant milestone in the ongoing modernization of Nigeria's capital market infrastructure. It follows the successful implementation of the T+2 settlement cycle introduced on November 28, 2025. The Commission reiterated its commitment to strengthening market integrity, boosting investor confidence, and driving the development of a resilient and internationally competitive Nigerian capital market.
Benefits of T+1 Settlement
Shortening the settlement cycle from two business days to one business day after trade execution is expected to strengthen market efficiency, enhance risk management, reduce counterparty exposure, and improve liquidity across the market. All eligible trades executed from Monday, June 1, 2026, onward will automatically fall under the T+1 settlement cycle.
Operational Readiness
To ensure a seamless transition, the SEC has directed Capital Market Operators (CMOs), securities exchanges, clearing and settlement infrastructure providers, custodians, registrars, issuers, and other stakeholders to take all necessary steps toward operational readiness and compliance with the new framework. The regulator urged market participants to review and align their systems, internal controls, operational processes, and transaction workflows ahead of the implementation date to avoid disruptions when the new settlement regime takes effect.
Stakeholder Engagement
The Commission also stated that it would continue engaging stakeholders and closely monitoring the implementation process to ensure an orderly migration to the T+1 framework. This transition underscores the SEC's dedication to building a more efficient, transparent, and globally competitive market environment.
