The Securities and Exchange Commission (SEC) has announced that the transition to a T+1 settlement cycle for equities and commodities transactions will take effect from June 1, 2026.
The trade settlement cycle is the period between the execution of a trade and the final transfer of securities to the buyer and cash to the seller.
Under the new T+1 cycle, settlement will occur one business day after the trade date. The commission said the move is part of its ongoing market modernisation initiatives aimed at promoting an efficient, fair, and transparent capital market.
According to SEC, the shift to T+1 will enhance market efficiency, strengthen risk management, reduce counterparty exposure, improve liquidity, and align Nigeria’s capital market with international standards and global best practices.
The commission has outlined a comprehensive framework and urged all capital market operators and stakeholders to prepare fully for the change.
With the new framework, all eligible trades executed in the Nigerian capital market will settle one business day after the trade date, shortening the current T+2 cycle.
The final trading day under the existing T+2 cycle will be May 29, 2026. Trades executed on both May 29 and June 1, 2026, will settle on June 2, 2026, creating a smooth transition. From June 1, 2026, all trades will operate under the T+1 framework.
SEC emphasised that all capital market operators, securities exchanges, clearing houses, custodians, registrars, issuers, and other stakeholders must be fully operationally ready by the commencement date.
The commission noted that the move positions Nigeria in line with developed markets. The United States, Canada, and Mexico all migrated to T+1 in May 2024.
For retail investors, the change means quicker access to proceeds from share sales. Institutional players and custodians are advised to reconfigure their back-office systems and workflows ahead of the deadline.
The journey from T+3 to T+2 and now to T+1 in less than seven months underscores SEC’s proactive approach to building a more dynamic and robust capital market.
Market participants are expected to review and align their systems, processes, and operational workflows before the implementation date. SEC said it will continue to engage stakeholders and monitor the transition to ensure it is orderly and seamless.
“We remain committed to strengthening market integrity, enhancing investor confidence, and fostering the development of a modern, resilient, and globally competitive Nigerian capital market,” the commission said.
