Nigeria capital market to adopt T+1 settlement cycle from May 29

Nigeria’s capital market will transition to a T+1 settlement cycle from May 29, 2026.

The development was disclosed in a notice seen by Nairametrics, which was issued to stakeholders by the Central Securities Clearing System (CSCS), the securities depository and settlement arm of the Nigerian Exchange Group (NGX), on Monday, March 16, 2026.

Under the new settlement framework, securities transactions in the Nigerian market will be completed one business day after the trade date, reducing the current settlement period and enabling faster movement of securities and funds among market participants.

MoreStories

NGX, SEC begin review of free-float requirements to unlock liquidity

March 16, 2026

Nigerian All-Share Index smashes 200,000 points milestone for the first time

March 16, 2026

What the CSCS is saying

The CSCS informed stakeholders that the Nigerian capital market will officially transition to a T+1 settlement cycle beginning Friday, May 29, 2026. The change will shorten the settlement window from the current two business days (T+2) to one business day after the trade date.

• _“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.” _
• _“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 reform, which is supported by the Securities and Exchange Commission (SEC) and other market operators, is designed to enhance post-trade efficiency, reduce settlement risks, and bring Nigeria’s market structure closer to global best practices.

More insights

The migration to a shorter settlement cycle is expected to significantly reduce the time between the execution of a trade and the final exchange of securities and funds.

• After the transition window, all trades executed in Nigeria’s capital market will automatically settle on the next business day following the trade date.
• The change will shorten the settlement timeline, enabling faster recycling of capital and potentially improving market liquidity.
• Market stakeholders believe the reform will enhance operational efficiency and strengthen investor confidence across the equities and securities markets.

The transition will require readiness from exchanges, brokers, custodians, registrars, settlement banks, and institutional investors.

Stakeholders across the capital market ecosystem are expected to coordinate closely in the months leading up to the implementation to ensure systems and processes are fully aligned with the new settlement timeline.

What you should know

The move to T+1 settlement builds on recent reforms introduced by regulators and market institutions to modernize Nigeria’s capital market infrastructure.

• Nigeria previously migrated from a T+3 to a T+2 settlement cycle in November 2025 as part of efforts to improve efficiency and reduce systemic risk in the market.
• SEC Director-General Dr. Emomotimi Agama has described shorter settlement cycles as a key feature of competitive global markets.
• According to Agama, faster settlement reduces counterparty risk and lowers the chances of transaction failures in the market.

The migration to T+1 forms part of a broader phased strategy that could eventually position Nigeria’s capital market for same-day (T+0) settlement.

Regulators had told Nairametrics that while the clearing infrastructure already has the technological capacity to support faster settlement cycles, a gradual transition approach was adopted to ensure market stability and protect different categories of investors, including institutional investors such as pension funds and asset managers.

Add Nairametrics on Google News

Follow us for Breaking News and Market Intelligence.