The Securities and Exchange Commission (SEC) of Nigeria has announced that the capital market will transition to a T+1 settlement cycle starting Monday, June 1, 2026. This new system applies to all equity and commodity trades cleared through the Central Securities Clearing System (CSCS), replacing the current T+2 settlement cycle that was implemented on November 28, 2025.
Key Details of the Transition
Under the T+1 system, all eligible trades executed in the Nigerian capital market will be settled one business day after the trade date. The SEC confirmed that Friday, May 29, 2026, will be the last trading day under the T+2 cycle. Trades conducted on May 29 and June 1, 2026, will settle on Tuesday, June 2, 2026. From June 1, 2026, all transactions will automatically follow the T+1 cycle.
The SEC emphasized that this reform is part of ongoing efforts to modernize the market, improve efficiency, enhance risk management, reduce counterparty exposures, boost liquidity, and align Nigeria's capital market with global standards.
Market Participants Urged to Prepare
In a statement, the SEC directed all capital market operators, securities exchanges, clearing and settlement infrastructure providers, custodians, registrars, issuers, and other stakeholders to ensure full operational readiness before the transition. The commission stated: 'Market participants are encouraged to revise and adjust their systems, processes, controls, and operational procedures before the implementation date.'
The SEC pledged to continue consulting with market participants and monitoring progress to ensure a smooth implementation. It reaffirmed its commitment to market integrity, increased investor confidence, and building a robust and globally competitive capital market, as reported by BusinessDay. The CSCS will work closely with market operators, playing a critical role in trade clearing and settlement operations.
Expert Insights on the Reform
Gilbert Ayoola, lead adviser, capital market advocacy educator, and General Secretary of the Ibadan Zone Shareholders' Association, described the transition as a major step forward. He explained: 'A T+1 settlement cycle means trades are completed one business day after execution, compressing timelines across trade confirmation, clearing, and settlement processes. Ultimately, the transition to T+1 is a forward-looking reform that underscores Nigeria’s commitment to building a more efficient, transparent, and globally integrated capital market.'
Ayoola noted that while the shift requires significant coordination among brokers, custodians, registrars, settlement banks, and investors, it also catalyzes much-needed improvements in automation, operational discipline, and risk management.
Positive Impact on Investors
Earlier reports indicated that the Nigerian stock market All-Share Index (ASI) rose by 1.20%, climbing to 144,928.36 points from 143,210.33 points. This increase boosted investors' wealth by N1.29 trillion, pushing market capitalization to N92.38 trillion, while the year-to-date return strengthened to 40.81%. Dangote Cement Plc was the top performer, while Ikeja Hotel Plc led the list of decliners.
