New rule takes effect June 1, 2026, cutting settlement time from two days to one to boost efficiency, liquidity, and investor confidence….
The Securities and Exchange Commission (SEC) has announced that Nigeria’s capital market will officially transition to a T+1 settlement cycle for equities and commodities transactions starting Monday, June 1, 2026.
In a notice issued to market participants, the Commission said the reform is part of ongoing efforts to modernise the capital market, improve operational efficiency, reduce systemic risk, and align Nigeria with global best practices in securities trading and settlement.
Under the new framework, all eligible trades will now be settled one business day after the transaction date, effectively reducing the current T+2 settlement cycle by half.
According to the SEC, the final trading day under the existing T+2 system will be Friday, May 29, 2026, marking the end of the old settlement structure.
The Commission explained that a transition arrangement has been introduced to ensure a smooth migration into the new system.
It noted that trades executed on both May 29 and June 1, 2026, will settle simultaneously on Tuesday, June 2, 2026, creating a controlled convergence period designed to prevent disruptions to market operations.
From June 1, 2026, all trades will thereafter automatically fall under the T+1 settlement framework.
The SEC emphasized that capital market operators, exchanges, clearing and settlement systems, custodians, registrars, issuers, and other stakeholders are expected to be fully prepared before the implementation date to ensure a seamless transition.
According to the Commission, the reform is expected to strengthen market liquidity, reduce counterparty risk exposure, and enhance overall investor confidence in Nigeria’s financial system.
For retail investors, the shift means faster access to funds from share sales, as proceeds will now be credited within one business day of trade execution.
However, the SEC noted that institutional investors and back-office operators will need to upgrade systems, workflows, and reconciliation processes to comply with the accelerated settlement timeline.
The regulator described the transition as a key milestone in Nigeria’s capital market reforms, aimed at closing infrastructure gaps between the country and more advanced financial markets.
It added that the move is also expected to improve Nigeria’s attractiveness to foreign portfolio investors by making the market faster, more efficient, and more aligned with international settlement standards.
