SEC Provides Guidance For Capital Market Transition To T+1 Settlement Cycle

The Nigerian Securities and Exchange Commission (SEC) has released guidance document aimed at facilitating the transition to a T+1 settlement cycle for equities and commodities transactions in the Nigerian capital market, set to take effect on June 1, 2026.

This was contained in a notice by SEC management and published on May 18, 2026, outlines a comprehensive framework that all capital market operators and relevant stakeholders are encouraged to adopt in preparation for this significant change.

This transition is an integral part of the SEC’s broader initiative to modernise the market, thereby enhancing liquidity and aligning the Nigerian capital market with global best practices.

The notice stated that with the new framework, all eligible trades executed in the Nigerian capital market will settle one business day after the trade date, effectively reducing the current two-business-day settlement period.
“Importantly, the final trading day under the existing T+2 cycle will be May 29, 2026.

Notably, trades executed on both May 29 and June 1, 2026, will settle on the same date, June 2, 2026, creating a seamless convergence window that supports an efficient transition.

“From June 1 onward, 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.”
This strategic move further positions Nigeria on a trajectory of convergence with developed market standards, following in the footsteps of the United States, which migrated to T+1 in May 2024, along with Canada and Mexico. India has also made notable strides in compressing its settlement cycle and is piloting instantaneous settlement for select trades. The SEC’s announcement underscores Nigeria’s commitment to aligning with these global advancements.
In this new framework, all eligible trades will settle one business day after their execution, marking a significant advancement for the market.
For retail investors, this means quicker access to proceeds from share sales. Meanwhile, institutional players and custodians must prioritize reconfiguring their back-office systems and reconciliation workflows to align with the T+1 cycle before June 1.
The recent reforms reflect Nigeria’s dedication to bridging the infrastructure gap with more developed markets and signify an attractive opportunity for foreign institutional investors.
The journey from T+3 to T+2 and now to T+1 in less than seven months highlights the SEC’s proactive approach toward fostering a more dynamic and robust capital market.