SEC Confirms June 1 Launch for T+1 Settlement Cycle in Nigerian Capital Market

Nigeria’s capital market will officially transition to a T+1 settlement cycle from June 1, 2026, according to the Securities and Exchange Commission (SEC).

The new system means that transactions executed on the stock market will now be settled one business day after trading, replacing the previous T+2 structure that allowed two business days for settlement completion.

The SEC said the move is aimed at improving market efficiency, reducing settlement risks, and aligning Nigeria’s financial market operations with global best practices.

Under the T+1 model, investors will receive securities or cash faster after trades are completed, a development expected to enhance liquidity and strengthen investor confidence in the market.

Market analysts believe the shorter settlement cycle could also improve transparency and reduce exposure to market volatility during transaction processing periods.

The transition follows months of collaboration among regulators, stockbrokers, custodians, clearing houses, and other capital market stakeholders to ensure readiness ahead of implementation.

Several major global markets, including the United States and Canada, have already adopted the T+1 settlement framework as part of broader reforms to modernize trading systems and improve operational efficiency.

The SEC expressed confidence that Nigeria’s market infrastructure is prepared for the change and noted that the reform would support the long-term growth and competitiveness of the country’s financial markets.