By Oluwakemi Kindness
The Securities and Exchange Commission (SEC) has announced a major reform in Nigeria’s capital market, introducing a T+1 settlement cycle for equities and commodities transactions effective June 1, 2026.
The move is aimed at improving market efficiency, strengthening risk management, reducing counterpart exposure, and aligning Nigeria with global capital market standards.
Final Day for T+2 Cycle
According to a statement on Tuesday by the Commission, the existing T+2 settlement cycle will end on May 29, 2026.
Thw statement said Trades executed on May 29 and June 1, 2026, will both settle on June 2, 2026, ensuring a smooth transition into the new system.
What Changes Under T+1
From June 1, all eligible trades will now settle **one business day after execution**, replacing the current two-day settlement period.
The Commission explained that this reform is part of broader market modernisation efforts designed to improve liquidity and reduce systemic risk.
Global Alignment
SEC noted that the shift brings Nigeria in line with advanced markets such as the **United States, Canada, and Mexico**, which have already moved to T+1 settlement.
India has also been gradually tightening its settlement timeline, with pilots for faster and near-instant settlement systems.
#Impact on Investors and Operators
For retail investors, the new system means faster access to cash from share sales.
However, institutional players, custodians, and market operators are expected to upgrade systems, workflows, and reconciliation processes ahead of the deadline.
SEC’s Position
The Commission said it will continue engaging stakeholders to ensure a smooth transition and maintain market stability.
It reaffirmed its commitment to building a modern, resilient, and globally competitive Nigerian capital market
