Nigeria’s capital market will transition to a faster trade settlement regime from June 1, 2026, as regulators and market operators commence the implementation of the T+1 settlement cycle aimed at improving market efficiency, liquidity, and investor confidence.

The shift, approved by the Securities and Exchange Commission and coordinated by the Central Securities Clearing System Plc (CSCS), alongside key stakeholders, will reduce the settlement period for equity transactions from two business days to one day after execution.

The move marks one of the most significant post-trade infrastructure reforms in the Nigerian market in recent years and aligns the country with global markets that have accelerated settlement timelines to reduce operational risks and improve capital efficiency.

Under the new framework, securities and funds arising from transactions executed in the Nigerian market will be exchanged within one business day, a development expected to speed up capital recycling, improve liquidity, and lower counterparty settlement risks.

The transition places Nigeria among markets adopting shorter settlement windows as global exchanges increasingly move toward faster settlement systems to improve competitiveness and attract investment flows.

Managing Director and Chief Executive Officer of CSCS, Shehu Yahaya Shantali, described the transition as a major milestone in the evolution of Nigeria’s market infrastructure.

According to him, the adoption of T+1 demonstrates the market’s readiness to embrace reforms capable of strengthening efficiency, deepening liquidity, and boosting investor confidence.

“The transition to T+1 represents another important milestone in the evolution of Nigeria’s capital market infrastructure,” Shantali said, adding that the initiative reflects broad market collaboration involving regulators, exchanges, trade associations, and operators.

Industry stakeholders have already intensified system upgrades, operational testing, and readiness exercises ahead of the rollout, while CSCS has conducted industry engagement sessions and webinars with exchanges and trade associations to prepare market participants for the change.

The SEC said the transition forms part of wider efforts to strengthen market competitiveness and reinforce confidence in Nigeria’s capital market architecture, noting that shorter settlement cycles signal stronger market discipline, infrastructure quality, and regulatory credibility.

Analysts believe the migration could enhance trading activity by enabling quicker deployment of capital while improving the attractiveness of Nigerian equities and fixed-income instruments to both local and foreign investors.

To commemorate the implementation, CSCS and Nigerian Exchange Group will host a special closing gong ceremony at NGX House in Lagos on June 1 to formally mark the commencement of the T+1 regime.

The transition comes as Nigerian market authorities continue efforts to modernise infrastructure, deepen market participation, and position the capital market as a stronger financing platform for economic growth.

 

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