Nigeria’s SEC Announces Date For Transition to T+1 Settlement Cycle

• The SEC has fixed June 1, 2026, for the transition to a T+1 settlement cycle in Nigeria’s capital market, covering equities and commodities transactions.
• Under the new system, all trades cleared by the Central Securities Clearing System will now be completed one business day
• The reform is expected to boost market efficiency, reduce settlement risk, and improve liquidity

Find it fast with our new search feature at Legit.ng!

Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The Securities and Exchange Commission (SEC) has revealed that the Nigerian capital market will switch to a T+1 settlement cycle for equity and commodities traded and cleared through the Central Securities Clearing System (CSCS) from Monday, June 1, 2026.

Under this new system, all eligible trades executed in the Nigerian capital market shall be settled one business day after trade date instead of the existing T+2 settlement cycle implemented on November 28, 2025.

The SEC also stated that Friday, May 29, 2026, would be the last trading day under the T+2 settlement cycle, and that trades on Friday, May 29, 2026, and Monday, June 1, 2026, will settle on Tuesday, June 2, 2026, while transactions from June 1, 2026, shall be automatically under the T+1 cycle.

From breaking news to viral moments. Follow Legit.ng on Instagram.

New changes, good news for investors

According to the Commission, this is part of the ongoing reforms to modernise the market in order to improve efficiency, enhance risk management, reduce counterparty exposures, improve liquidity, and ensure Nigeria capital market is competitive with global standards.

The SEC, in its statement, instructed all capital market operators, securities exchanges, clearing and settlement infrastructure providers, custodians, registrars, issuers and all market stakeholders to prepare for full operational readiness before the transition.

The commission said:

"Market participants are encouraged to revise and adjust their systems, processes, controls and operational procedures before the implementation date"

It promised that it would continue to consult with market participants and monitor progress to ensure smooth implementation.

The SEC reaffirmed its obligation towards market integrity, increased investor confidence, and built a capital market that is robust and competitive in global market terms, BusinessDay reports.

The CSCS would also closely work with market operators as it will continue to play a critical role in trade clearing and settlement operations.

Expert explains new directive

Reacting to the development, Gilbert Ayoola, lead adviser, capital market advocacy educator, and General Secretary of the Ibadan Zone Shareholders' Association, told Legit.ng that the transition represents a major step.

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.

"While the shift requires significant coordination among brokers, custodians, registrars, settlement banks, and investors, it also catalyses much-needed improvements in automation, operational discipline, and risk management."

Stock market investors’ wealth increases

Earlier, Legit.ng reported that the Nigerian stock market All-Share Index (ASI) rose by 1.20%, climbing to 144,928.36 points from 143,210.33 points recorded on Monday.

As a result, investors' wealth increased by N1.29 trillion, pushing market capitalisation to N92.38 trillion, while the year-to-date return strengthened to 40.81%.

Dangote Cement Plc emerged as the top performer, while Ikeja Hotel Plc led the list of decliners.