SEC Trasitions Capital Market To T+1 Settlement Cycle June 1

The Securities and Exchange Commission (SEC) has announced the transition of the Nigerian capital market to a T+1 settlement cycle for equities and commodities transactions, effective June 1, 2026.

The commission disclosed this in a circular issued on Monday and posted on its official X handle.

According to SEC, the new settlement structure would apply to transactions cleared and settled by the Central Securities Clearing System.

The commission said the move followed the successful implementation of the T+2 settlement cycle introduced on November 28, 2025.

It explained that the transition formed part of broader efforts to modernise the Nigerian capital market and align it with global best practices.

“Further to the successful implementation of the T+2 settlement cycle on November 28, 2025, and in furtherance of its mandate to promote an efficient, fair, and transparent capital market, the Securities and Exchange Commission hereby announces the transition to a T+1 settlement cycle for equities and commodities transactions cleared and settled by the Central Securities Clearing System (CSCS), with effect from Monday, June 1, 2026,” the circular stated.

Under the T+1 framework, all eligible trades executed in the Nigerian capital market would settle one business day after the trade date.

The SEC noted that the migration was designed to enhance market efficiency, improve liquidity, strengthen risk management and reduce counterparty exposure.

According to the commission, the initiative would also deepen investor confidence and improve the competitiveness of the Nigerian market globally.

“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,” it said.

The commission clarified that Friday, May 29, 2026, would be the final trading day under the current T+2 settlement regime.

It added that trades executed on Friday, May 29, and Monday, June 1, 2026, would both settle on Tuesday, June 2, 2026.
“Effective Monday, June 1, 2026, all eligible trades shall settle on a T+1 basis,” the SEC stated.

SEC explained that all transactions executed from June 1 onward would automatically fall under the new settlement cycle.

The commission directed all capital market stakeholders to ensure full operational preparedness ahead of the implementation date.

The affected stakeholders include Capital Market Operators, Securities Exchanges, clearing and settlement infrastructure providers, custodians, registrars, issuers and other market participants.

According to the circular, stakeholders are expected to review and align their systems, operational processes, controls and workflows to ensure seamless compliance with the new framework.

“All Capital Market Operators, Securities Exchanges, Clearing and Settlement Infrastructure Providers, Custodians, Registrars, Issuers, and other relevant stakeholders are required to take all necessary measures to ensure full operational readiness and compliance with the new settlement framework,” the commission stated.

It added that the SEC would continue to engage market operators and monitor the implementation process to ensure a smooth transition. “The Commission will continue to engage stakeholders and monitor the implementation process to ensure an orderly and seamless transition,” the circular added.

The SEC reiterated its commitment to strengthening market integrity, boosting investor confidence and developing a resilient and globally competitive capital market.

“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,” it said.