The Securities and Exchange Commission (SEC) has announced plans to migrate the Nigerian capital market to a T+1 settlement cycle for equities and commodities transactions, effective June 1.
T+1 settlement is a financial market process where the exchange of ownership of a security (like a stock) for money is completed one business day after the trade date.
The commission said in a statement on Tuesday that the transition follows the successful implementation of the T+2 settlement cycle on November 28, 2025.
The SEC said the new framework would apply to transactions cleared and settled by the Central Securities Clearing System (CSCS).
Under the T+1 settlement cycle, eligible trades executed in the capital market will settle one business day after the trade date.
The commission said the migration forms part of its market modernisation initiatives aimed at improving efficiency, reducing risks, and aligning the Nigerian capital market with global standards.
“The migration to a T + 1 settlement cycle forms part of the Commission’s ongoing market modernization initiatives aimed at enhancing market efficiency, strengthening risk management, reducing counterparty exposure, improving liquidity, and aligning the Nigerian capital market with international standards and global best practices,” the statement reads.
The commission said May 29 will be the final trading day under the existing T+2 settlement cycle, noting that trades executed on “Friday, May 29, and Monday, June 1, will both settle on Tuesday, June 2, 2026″.
According to the commission, all trades executed from June 1 onward would be subject to the new T+1 settlement framework.
The SEC asked capital market operators, securities exchanges, clearing and settlement infrastructure providers, custodians, registrars, issuers, and other stakeholders to ensure operational readiness ahead of the transition.
“Market participants are expected to review and align their systems, processes, controls, and operational workflows ahead of the implementation date,” the statement further reads.
“The Securities and Exchange Commission remains committed to strengthening market integrity, enhancing investor confidence, and fostering the development of a modern, resilient, and globally competitive Nigerian capital market.”
The SEC pledged to continue engaging stakeholders to ensure a seamless transition to the new settlement cycle.
