Nigeria’s capital market is set to transition to a T+1 settlement cycle starting May 29, 2026, a move aimed at speeding up the processing of trades and aligning the market with global best practices. The announcement came through a notice issued by the Central Securities Clearing System (CSCS), the clearing and settlement arm of the Nigerian Exchange Group (NGX), to all market stakeholders.
Under the new framework, securities transactions will be completed one business day after the trade date, replacing the current T+2 cycle that settles trades over two business days. This change is expected to enable faster movement of securities and funds, reducing settlement risks and enhancing overall market efficiency. According to CSCS, trades executed on May 28, the last day under T+2, and May 29, the first day under T+1, will both settle on June 1, 2026.
Market analysts say the T+1 settlement cycle could significantly improve liquidity by allowing capital to recycle faster between transactions. Institutional investors, brokers, custodians, registrars, and settlement banks will need to ensure their systems and processes are ready for the new timeline. Stakeholders are coordinating closely to guarantee a smooth transition and prevent disruption in market operations.
This move builds on recent reforms in the Nigerian capital market, including the shift from T+3 to T+2 in November 2025, aimed at modernizing infrastructure and reducing systemic risk. The Securities and Exchange Commission (SEC) supports the reform, highlighting that faster settlements reduce counterparty risks, lower transaction failures, and strengthen investor confidence.
Looking ahead, the adoption of T+1 is part of a broader phased strategy that could eventually lead to same-day (T+0) settlements. Regulators have emphasized that while technology exists to support even faster cycles, the gradual approach ensures stability for all investors, from retail participants to large pension and asset managers, safeguarding the market as it modernizes.
source: nairametrics