Nigeria Becomes First African Market to Adopt T+1 Settlement Cycle

The Nigerian capital market achieved a historic milestone on Monday with the successful transition to a T+1 settlement cycle. This makes Nigeria the first market in Africa to implement the shortened settlement framework, designed to enhance efficiency, reduce risk, and improve global competitiveness.

Speaking at the T+1 Settlement Cycle Transition Ceremony in Lagos, the Director-General of the Securities and Exchange Commission, Emomotimi Agama, described the development as a defining moment in the market's evolution.

“The era of T+1 has begun. In just six months, Nigeria has successfully progressed from T+2 to T+1 settlement, joining a growing group of markets embracing faster and more efficient settlement cycles. This achievement signals that Nigeria is prepared to undertake the structural reforms required to compete for global capital,” Agama said.

He added that the reform aligned Nigeria’s capital market with global best practices, where shorter settlement cycles are increasingly being adopted to improve post-trade efficiency, reduce counterparty risk, and strengthen investor confidence. He reaffirmed the commission’s commitment to the continued modernisation of market systems and processes.

Stakeholders Hail the Move

In his goodwill message, the Group Chairman of NGX Group, Alhaji Umaru Kwairanga, described the transition as a key step in the ongoing transformation of Nigeria’s capital market. He said the development underscored the shared commitment of stakeholders to strengthening market institutions, deepening investor confidence, and enhancing the market’s role in supporting economic growth and capital formation.

“Milestones such as this reinforce confidence in our institutions and demonstrate our collective determination to build a more efficient and globally competitive capital market,” he stated.

Also speaking at the event, the Group Managing Director and Chief Executive Officer of NGX Group, Temi Popoola, said the transition represented a critical step in the broader evolution of Nigeria’s capital market. He noted that while the achievement marked a significant milestone, it was part of a longer journey toward building a deeper, more liquid, and more globally competitive market.

“While today is a significant milestone, it is not the destination. It is part of a broader journey toward building a deeper, more liquid, efficient, and globally competitive capital market capable of supporting long-term economic growth and capital formation,” Popoola said.

The Managing Director and Chief Executive Officer of CSCS Plc, Shehu Shantali, said the milestone reflected the strength and operational readiness of Nigeria’s post-trade ecosystem. He noted that the new settlement cycle would enhance transaction speed, improve liquidity efficiency, and reduce settlement exposure across the market.

“This transition is far more than a reduction in settlement timelines. It represents a strategic upgrade to market infrastructure and reinforces our commitment to building a more efficient, resilient, and globally competitive capital market,” Shantali said.

Symbolic Gong Marks New Era

The ceremony culminated in a symbolic closing gong ceremony marking the official commencement of the T+1 settlement cycle. The event was attended by chief executive officers of exchanges, market operators, regulators, stockbrokers, and leaders of trade associations across the capital market ecosystem.

The transition follows six months of coordinated industry-wide preparations involving regulators, exchanges, depositories, custodians, registrars, and other market participants. Nigeria now joins a growing list of global markets adopting shorter settlement cycles to improve post-trade efficiency and market resilience.