Nigeria’s capital market becomes first in Africa to adopt one-day trade settlement cycle
Nigeria has achieved a major milestone in its financial sector as the Nigerian Exchange (NGX) officially transitioned to a T+1 settlement cycle, becoming the first capital market in Africa to adopt the one-day trade settlement framework. The move, announced during a ceremony in Lagos on Monday, is expected to enhance market efficiency, improve investor confidence, and strengthen Nigeria’s position as a competitive destination for global investment.
Speaking at the event, Director-General of the Securities and Exchange Commission (SEC), Emomotimi Agama, described the transition as a significant step toward aligning Nigeria’s capital market with international best practices. According to him, the adoption of the T+1 framework places Nigeria among leading global markets that account for nearly 60 percent of the world’s market capitalization. He noted that the reform demonstrates the country’s readiness to embrace structural changes necessary for attracting both local and foreign investors.
The new settlement cycle means investors who sell shares on the Nigerian Exchange will receive their funds the next business day instead of waiting two or three days. Agama explained that the shorter timeline reduces counterparty risks, improves liquidity, and allows capital to circulate more quickly within the economy. He highlighted that Nigeria only moved from a T+3 settlement cycle to T+2 in November 2025, making the full transition to T+1 within six months a remarkable achievement.
Industry stakeholders have welcomed the development, describing it as a major boost for market efficiency and investor experience. Chairman of NGX Group, Umaru Kwairanga, said the milestone reinforces confidence in Nigeria’s financial institutions and showcases the market’s determination to compete on a global stage. Similarly, Temi Popoola, Chairman of the Central Securities Clearing System (CSCS) and Group CEO of NGX Group, emphasized that the transition is part of a broader strategy to deepen liquidity, expand investment opportunities, and support long-term economic growth.
CSCS Managing Director, Shehu Shantali, revealed that the journey toward T+1 began in 2023 with industry-wide preparations led by the SEC. He noted that significant investments were made in technology infrastructure, cybersecurity, digital platforms, and operational resilience to support the transition. Looking ahead, the SEC has already set its sights on an even faster T+0 settlement cycle, signaling Nigeria’s ambition to remain at the forefront of capital market innovation in Africa while creating a more efficient and globally competitive investment ecosystem.
source: The Cable