Nigeria to Adopt T+1 Settlement Cycle in Capital Market

Nigeria’s capital market will transition to a T+1 settlement cycle from May 29, 2026, in a move aimed at improving efficiency and aligning with global standards.

The change was announced by the Central Securities Clearing System, the clearing and settlement arm of the Nigerian Exchange Group.

Under the new framework, all securities transactions will be completed one business day after the trade date, replacing the current T+2 system.

“The market will transition to a T+1 settlement cycle from May 29, 2026, meaning that all securities transactions will now be completed one business day after the trade date instead of the current two days.

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“Trades executed on Thursday, May 28, 2026, which will be the last trading day under the existing T+2 settlement framework, and transactions executed on Friday, May 29, the first day of T+1 trading, will both settle on Monday, June 1, 2026,” the notice stated.

The reform, supported by the Securities and Exchange Commission and other stakeholders, is expected to reduce settlement risk and enhance post-trade efficiency.

Market participants say the shorter settlement cycle will accelerate the movement of funds and securities, improve liquidity, and strengthen investor confidence.

Stakeholders across the ecosystem, including brokers, custodians, and institutional investors, are expected to align their systems and processes ahead of the transition.