SEC Nigeria Approves T+1 Settlement Cycle to Modernize Capital Market from June 1, 2026

Nigeria’s Securities and Exchange Commission (SEC) has announced a major shift in how trades are settled in the country’s capital market. Beginning June 1, 2026, Nigeria will officially move to a T+1 settlement cycle for equities and commodities, marking a significant step in modernising the financial system.

The directive was contained in a notice issued by the Commission on May 18, 2026, outlining a framework that all capital market operators must follow ahead of the transition. According to the SEC, the reform is part of a broader effort to improve market efficiency and bring Nigeria’s financial infrastructure in line with global best practices.

Under the new system, all eligible trades will now be settled one business day after the transaction date, replacing the current T+2 settlement cycle. The SEC also confirmed key transition dates, including May 29, 2026, as the final trading day under the old system, while trades around the transition window will settle on June 2, 2026 to ensure a smooth adjustment.

The Commission explained that the shift will significantly reduce counterparty risk—the possibility of a trade failing before settlement—while also improving liquidity in the market. Investors, brokers, and custodians are expected to benefit from faster access to cash and securities, allowing for quicker reinvestment and improved capital efficiency.

With countries like the United States, Canada, and Mexico already operating T+1 systems, Nigeria’s move signals its intention to stay competitive in global financial markets. The SEC has urged all operators to upgrade their systems ahead of the deadline, warning that failure to comply could lead to settlement disruptions and regulatory penalties.