SEC T+1 Settlement Cycle Nigeria: SEC Sets June 1, 2026 for Capital Market Transition

The Securities and Exchange Commission (Nigeria) has announced a major shift in the country’s capital market structure, confirming that Nigeria will officially adopt a T+1 settlement cycle for equities and commodities transactions starting Monday, June 1, 2026. The move is part of broader reforms aimed at modernising the financial ecosystem and improving market efficiency.

According to an official circular from the Commission, all market operators, exchanges, custodians, registrars, and other stakeholders are expected to fully prepare for the transition. The regulator said the change reflects its commitment to building a more efficient, transparent, and globally competitive capital market system.

Under the new framework, all eligible trades executed on the Nigerian exchange will now settle one business day after the transaction date, replacing the current T+2 system. The Commission also clarified that the final trading day under the old settlement cycle will be Friday, May 29, 2026, with a convergence window ensuring trades from both systems settle smoothly on Tuesday, June 2, 2026.

Market analysts say the shift brings Nigeria closer to international best practices, following countries like the United States, Canada, and Mexico, which have already implemented T+1 settlement systems. They also note that the rapid progression from T+3 to T+2 and now T+1 highlights Nigeria’s push to close infrastructure gaps and attract more foreign investment.

For investors, the reform means faster access to funds after selling shares, improving liquidity in the market. However, institutional players are expected to quickly upgrade back-office systems and operational processes to avoid settlement disruptions as the new cycle takes effect.

source: punch