Kayode Tokede
In furtherance of its mandate to promote an efficient, fair, and transparent capital market, the Securities and Exchange Commission (SEC) has announced the transition to a T+1 settlement cycle for equities and commodities transactions with effect from Monday, June 1, 2026.
This notice, published by the SEC, outlines a comprehensive framework that all capital market operators and relevant stakeholders are encouraged to adopt in preparation for this significant change.
The Commission stated that the migration to a T+1 settlement cycle forms part of the Commission’s ongoing market modernisation initiatives aimed at enhancing market efficiency, strengthening risk management, reducing counterparty exposure, improving liquidity, and aligning the Nigerian capital market with international standards and global best practices.
According to the notice, with the new framework, all eligible trades executed in the Nigerian capital market would settle one business day after the trade date, effectively reducing the current two-business-day settlement period.
“Importantly, the final trading day under the existing T+2 cycle will be May 29, 2026.
“Specifically, trades executed on both May 29 and June 1, 2026, will settle on the same date, June 2, 2026, creating a seamless convergence window that supports an efficient transition.
“From June 1 onward, all trades will operate under the T+1 framework, and it is essential for all capital market operators, securities exchanges, clearing and settlement infrastructure providers, custodians, registrars, issuers, and other stakeholders to ensure they are fully operationally ready by the commencement date.
“Implementation Highlights are: Effective Monday, June 1, 2026, all eligible trades shall settle on a T+1 basis; Friday, May 29, 2026, shall be the final trading day under the existing T+2 settlement cycle; Trades executed on Friday, May 29, 2026, and Monday, June 1, 2026, shall both settle on Tuesday, June 2, 2026; and All trades executed from Monday, June 1, 2026, onward shall be subject to the T+1 settlement cycle.”
This strategic move further positions Nigeria on a trajectory of convergence with developed market standards, following in the footsteps of the United States, which migrated to T+1 in May 2024, along with Canada and Mexico. India has also made notable strides in compressing its settlement cycle and is piloting instantaneous settlement for select trades.
For retail investors, this means quicker access to proceeds from share sales.
Meanwhile, institutional players and custodians are expected to prioritise reconfiguring their back-office systems and reconciliation workflows to align with the T+1 cycle before June 1.
The recent reforms reflect Nigeria’s dedication to bridging the infrastructure gap with more developed markets and signify an attractive opportunity for foreign institutional investors.
The journey from T+3 to T+2 and now to T+1 in less than seven months highlights the SEC’s proactive approach toward fostering a more dynamic and robust capital market.
“Market participants are expected to review and align their systems, processes, controls, and operational workflows ahead of the implementation date.
“The Commission will continue to engage stakeholders and monitor the implementation process to ensure an orderly and seamless transition. We remain committed to strengthening market integrity, enhancing investor confidence, and fostering the development of a modern, resilient, and globally competitive Nigerian capital market,” it added.