SEC Unveils Faster Trade Settlement System June 1st

The Securities and Exchange Commission has announced that the Nigerian capital market will transition to a faster T+1 settlement cycle for equities and commodities transactions effective Monday, June 1, 2026. The new system will require all eligible trades cleared by the Central Securities Clearing System to settle one business day after the trade date, replacing the current T+2 framework that was introduced in November 2025.

The Commission disclosed in a circular that Friday, May 29, 2026, will be the final trading day under the existing T+2 settlement cycle. Trades executed on both May 29 and June 1 will settle on the same date, Tuesday, June 2, 2026, creating a convergence window to manage the transition smoothly.

The SEC stated that the migration forms part of its ongoing market modernisation initiatives aimed at enhancing market efficiency, strengthening risk management, reducing counterparty exposure, and improving liquidity. “In furtherance of its mandate to promote an efficient, fair, and transparent capital market, the Securities and Exchange Commission hereby announces the transition to a T+1 settlement cycle,” the Commission stated.

“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,” the SEC noted. “Market participants are expected to review and align their systems, processes, controls, and operational workflows ahead of the implementation date”.

The Commission said it would continue to engage stakeholders and monitor the implementation process to ensure an orderly and seamless transition, adding that it remains committed to strengthening market integrity and enhancing investor confidence.

The move accelerates Nigeria’s convergence with developed market standards, following the United States, Canada, and Mexico, which migrated to T+1 in May 2024. For retail investors, proceeds from share sales will be available sooner, while institutional players must reconfigure their back-office systems ahead of the June 1 deadline.

The Central Securities Clearing System Director-General, Mr. Shehu Shantali, described the transition as a strategic initiative to position Nigeria’s market infrastructure in line with evolving global standards. “The transition to T+1 is not merely a change in settlement timelines. It is a strategic initiative aimed at positioning Nigeria’s market infrastructure in line with evolving global standards while enhancing efficiency, reducing systemic risk, and strengthening investor confidence,” Shantali stated.