The Securities and Exchange Commission has announced the transition to a T+1 settlement cycle for equities and commodities transactions in the Nigerian capital market, with effect from Monday, 1 June 2026. The apex regulatory body stated that the transition is in furtherance of its statutory mandate to promote an efficient, fair and transparent capital market ecosystem.

The official circular published by the commission outlines a comprehensive implementation framework that all capital market operators and relevant institutional stakeholders are expected to adopt in preparation for the migration.

The commission stated that the migration to a T+1 settlement cycle forms part of its ongoing market modernisation initiatives aimed at enhancing trading efficiency, strengthening risk management, reducing counterparty exposure, improving system liquidity and aligning the domestic market layout with international standards and global best practices.

According to the regulatory notice, all eligible trades executed on the floor of the local exchange under the new framework will settle one business day after the transaction date, effectively compressing the current two-business-day timeline.

“Importantly, the final trading day under the existing T+2 cycle will be Friday, 29 May 2026. Specifically, trades executed on both 29 May and 1 June 2026 will settle on the same date, Tuesday, 2 June 2026, creating a seamless convergence window that supports an efficient transition.

From 1 June onwards, all trades will operate under the T+1 framework, and it is essential for all capital market operators, securities exchanges, clearing and settlement infrastructure providers, custodians, registrars, issuers and other stakeholders to ensure they are fully operationally ready by the commencement date,” the commission noted.

The strategic policy shift moves Nigeria closer to global capital market standards, following the footprint of the United States, which migrated to T+1 in May 2024, alongside Canada and Mexico.

For domestic retail investors, the contraction of the transaction cycle guarantees quicker access to cash proceeds arising from corporate share sales. Conversely, institutional players, asset managers and custodians are required to prioritise the immediate reconfiguration of their back-office infrastructure and transaction reconciliation workflows to prevent settlement hitches.

Market analysts noted that the rapid transition from T+3 to T+2, and now to T+1 in less than seven months, highlights the regulatory body’s proactive approach to bridging the infrastructure gap with developed markets, presenting an attractive environment for foreign portfolio inflows.

“Market participants are expected to review and align their systems, processes, controls and operational workflows ahead of the implementation date. The commission will continue to engage stakeholders and monitor the implementation process to ensure an orderly and seamless transition. We remain committed to strengthening market integrity, enhancing investor confidence and fostering the development of a modern, resilient and globally competitive Nigerian capital market,” the circular added.