LAGOS — The Securities and Exchange Commission has announced that Nigeria will transition to a T+1 settlement cycle for equities and commodities transactions from Monday, June 1, 2026. The new system means that trades will be settled one business day after execution, down from the current T+2 standard.
SEC Director-General Emomotimi Agama confirmed the change in a formal notice published on Wednesday. He said the transition is part of a broader effort to modernise Nigeria’s capital markets and bring them closer to global best practices.
“Moving to T+1 will improve market liquidity, reduce counterparty risk, and make Nigeria’s capital market more attractive to local and foreign investors,” Agama said in the notice. He urged all capital market operators and stakeholders to complete their technical preparations before June 1.
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The notice outlined a comprehensive framework covering clearing houses, stockbrokers, custodians, and settlement banks. All operators must update their systems to handle the faster settlement cycle. The SEC said it will conduct readiness assessments before the June 1 launch.
Why T+1 Matters
Faster settlement reduces the time that investors’ money is tied up between a trade and its completion. This frees up capital more quickly, allowing investors to reinvest sooner. It also reduces the risk that one party in a trade will fail to deliver before the settlement date.
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In addition, T+1 settlement is already the standard in major markets including the United States, Canada, and India. Nigeria’s move to T+1 brings it in line with those markets. This alignment makes it easier for foreign investors to operate in Nigeria without adjusting to different settlement timelines.
Furthermore, the change is expected to reduce the cost of post-trade operations for brokers and custodians over time. While there will be upfront technology investment required, the long-term efficiency gains are significant.
Market Readiness
Not all market participants are equally ready for T+1. Large stockbrokers and custodians with modern technology infrastructure say they are already prepared. Smaller operators say they need more time and technical support to upgrade their back-office systems.
The Nigerian Exchange Group and the Central Securities Clearing System have been working with the SEC for months on the transition plan. Both organisations said they are confident the market infrastructure will be ready by June 1.
Investors welcomed the announcement. The NGX All-Share Index responded positively on Wednesday, gaining ground on strong buying activity. Analysts said the T+1 announcement reinforces the sense that Nigeria’s capital market is maturing and becoming more investor-friendly.
