SEC Moves Nigeria to T+1 Settlement Cycle from June 2026

The Securities and Exchange Commission has announced a transition to a T+1 settlement cycle for equities and commodities in the Nigerian capital market. The new framework takes effect from Monday, 1 June 2026.

The apex regulator said the move is part of its mandate to promote an efficient, fair and transparent capital market. A circular published by the commission outlines a comprehensive implementation framework for all market operators and stakeholders.

Faster Settlement, Global Standards

Under T+1, all eligible trades executed on the local exchange will settle one business day after the transaction date. This compresses the current two-business-day timeline. The SEC stated that the migration is part of ongoing market modernisation initiatives aimed at enhancing trading efficiency, strengthening risk management, reducing counterparty exposure, improving system liquidity and aligning with international best practices.

The final trading day under the existing T+2 cycle will be Friday, 29 May 2026. Trades executed on both 29 May and 1 June 2026 will settle on the same date, Tuesday, 2 June 2026. This creates a seamless convergence window. From 1 June onwards, all trades will operate under the T+1 framework.

“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,” the commission noted.

Nigeria Joins Global Shift

The policy shift moves Nigeria closer to global capital market standards. The United States migrated to T+1 in May 2024, alongside Canada and Mexico. For domestic retail investors, the contraction of the transaction cycle guarantees quicker access to cash proceeds from share sales. Institutional players, asset managers and custodians must reconfigure their back-office infrastructure and transaction reconciliation workflows to prevent settlement hitches.

Market analysts noted that the rapid transition from T+3 to T+2, and now to T+1 in less than seven months, highlights the SEC’s proactive approach. It bridges the infrastructure gap with developed markets and presents an attractive environment for foreign portfolio inflows.

“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,” the circular added.

The SEC reaffirmed its commitment to strengthening market integrity, enhancing investor confidence and fostering a modern, resilient and globally competitive Nigerian capital market.