Nigeria’s SEC sets June 1 for transition to T+1 settlement cycle

The Securities and Exchange Commission (SEC) has disclosed the transition to a T+1 settlement cycle for equities and commodities transactions cleared and settled by the Central Securities Clearing System (CSCS) will take effect from Monday, June 1, 2026.

This implies that all eligible trades executed in the Nigerian capital market shall settle one business day after the trade date (T+1).

This development also follows the successful implementation of the T+2 settlement cycle on November 28, 2025.

The implementation highlights…

Effective Monday, June 1, 2026, all eligible trades shall settle on a T+1 basis.

Friday, May 29, 2026, shall be the final trading day under the existing T+2 settlement cycle.

Trades executed on Friday, May 29, 2026, and Monday, June 1, 2026, shall both settle on Tuesday, June 2, 2026.

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All trades executed from Monday, June 1, 2026, onward shall be subject to the T+1 settlement cycle.

In furtherance of its mandate to promote an efficient, fair, and transparent capital market, SEC said the migration to a T+1 settlement cycle forms part of the Commission’s ongoing market modernisation initiatives aimed at enhancing market efficiency.

It also noted that it forms part of the regulatory initiatives in strengthening risk management, reducing counterparty exposure, improving liquidity, and aligning the Nigerian capital market with international standards and global best practices.

“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.

“Market participants are expected to review and align their systems, processes, controls, and operational workflows ahead of the implementation date. The Commission will continue to engage stakeholders and monitor the implementation process to ensure an orderly and seamless transition,” the SEC noted, adding that it remains committed to strengthening market integrity, enhancing investor confidence, and fostering the development of a modern, resilient, and globally competitive Nigerian capital market.

Iheanyi Nwachukwu

Iheanyi Nwachukwu, is a creative content writer with almost two decades journalism experience writing on banking, finance, capital markets, and tax. The multiple awards winning journalist is Assistant Editor, BusinessDay. Iheanyi holds BSc Degree in Economics from Imo State University; Master of Science (MSc) Degree in Management from University of Lagos. Iheanyi has attended several work-related trainings including (i) Advanced Writing and Reporting Skills (Pan African University, Lagos); (ii) News Agency Journalism (Indian Institute of Mass Communication {IIMC}, New Delhi, India); and (iii) Capital Markets Development and Regulations (International Law Institute {ILI} of Georgetown University, Washington DC, USA). Other trainings Iheanyi attended include: Economic/Political Risk Analysis (By Thomson Reuters Foundation); International Financial Journalism (IFJ) (By PMA Media Training, UK); Effective Business Writing Skills (By Phillips Consulting); Reporting on Corporate Governance (By International Finance Corporation (IFC) & Thomson Reuters Foundation UK); etc. In addition, he has participated in high-level economy & markets events in Dubai, South Africa, Morocco, and other African countries like Zambia, Ghana and Gambia.