Capital market operators have intensified software and technological upgrades across their internal systems ahead of Nigeria’s historic transition to a T+1 settlement cycle scheduled to begin on Monday, June 1, 2026.
The new framework, approved by the Securities and Exchange Commission, will reduce the country’s post-trade settlement period to one business day after trade execution. This replaces the existing T+2 settlement cycle introduced in late 2025.
Under the directive, secondary market equities and commodities transactions executed on the Nigerian Exchange Limited, NASD OTC Exchange, and the Lagos Commodities and Futures Exchange will now complete cash and securities settlement within 24 hours.
Ahead of the implementation date, market operators have deployed Straight-Through Processing systems and Application Programming Interface portals aimed at reducing manual intervention in trade matching and clearing processes.
Speaking during an industry engagement session, the Managing Director and Chief Executive Officer of Central Securities Clearing System Plc, Shehu Shantali, described the transition as a major milestone for Nigeria’s capital market.
“The transition to T+1 represents another important milestone in the evolution of Nigeria’s capital market infrastructure,” Shantali said. “It reflects the market’s readiness to embrace reforms that enhance efficiency, strengthen investor confidence, improve liquidity, and align Nigeria more closely with leading global markets.”
Shantali stated that the shorter settlement timeline was made possible through extensive collaboration among technology teams, market infrastructure providers, regulators, and operators.
“The successful implementation of T+1 is a product of extensive collaboration across the capital market ecosystem,” he said. “We appreciate the commitment demonstrated by our regulator, the Securities and Exchange Commission, Exchanges, Trade Associations, market operators, and the T+1 Implementation Plan Committee.”
Also speaking, the President of the Association of Asset Custodians of Nigeria, Babatunde Majiyagbe, confirmed that custodians had adjusted their automated accounting systems to support same-day trade matching confirmations between brokers and custodial institutions.
“Custodians have aligned their systems and processes with the shorter settlement cycle, reaffirming our commitment to supporting regulators, investors, and infrastructure providers,” Majiyagbe said.
The Securities and Exchange Commission has consistently promoted the shorter settlement cycle, describing it as a global benchmark for market discipline and operational credibility.
According to the commission, Friday, May 29, 2026, will serve as the final trading session under the T+2 framework. As part of the transition process, trades executed on Friday, May 29, and Monday, June 1, will both settle on Tuesday, June 2, 2026. Full implementation of the T+1 cycle will take effect afterward.
To mark the rollout, the Central Securities Clearing System, in partnership with the Nigerian Exchange Group, will host a Special Closing Gong ceremony on Monday at NGX House in Lagos. The event is expected to bring together regulators, market executives, and key stakeholders to officially commemorate the transition.
