June 1 (THEWILL) — Nigeria’s capital market has recorded a major milestone in its drive for greater efficiency and global competitiveness, becoming the first market in Africa to transition to a T+1 settlement cycle, a move expected to improve liquidity, reduce transaction risks, and attract more investment flows.
The transition, which officially took effect on Monday, marks a significant advancement in the modernization of the country’s capital market infrastructure and aligns Nigeria with leading global markets that are adopting shorter settlement periods to enhance post-trade efficiency.
Speaking at the T+1 Settlement Cycle Transition Ceremony in Lagos, the Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, described the development as a landmark achievement that reflects the market’s readiness to embrace reforms necessary for competing in the global investment landscape.
“The era of T+1 has begun. In just six months, Nigeria has successfully progressed from T+2 to T+1 settlement, joining a growing group of markets embracing faster and more efficient settlement cycles.
“This achievement signals that Nigeria is prepared to undertake the structural reforms required to compete for global capital,” Agama said.
Under the T+1 framework, securities transactions are settled one business day after trade execution, compared to the previous two-day cycle.
Market experts say the shorter settlement period reduces counterparty risk, accelerates the movement of capital, improves liquidity management and enhances overall market efficiency.
Agama noted that the reform is consistent with international best practices and forms part of the Commission’s broader agenda to strengthen market integrity, deepen investor confidence and improve the ease of doing business within Nigeria’s capital market.
Also speaking at the event, the Group Chairman of NGX Group, Alhaji Umaru Kwairanga, said the successful transition demonstrates the collective commitment of regulators and market operators to building stronger institutions capable of supporting economic growth and capital formation.
According to him, the milestone reinforces confidence in Nigeria’s financial markets and highlights the determination of stakeholders to create a more efficient and globally competitive investment environment.
The Group Managing Director and Chief Executive Officer of NGX Group, Temi Popoola, described the transition as an important step in a broader transformation agenda aimed at deepening market liquidity and positioning Nigeria as a leading investment destination on the continent.
Similarly, Managing Director and Chief Executive Officer of Central Securities Clearing System (CSCS) Plc, Shehu Shantali, said the new settlement cycle reflects the operational readiness and resilience of Nigeria’s post-trade ecosystem.
He added that faster settlement would improve liquidity efficiency, reduce settlement exposure and strengthen market stability.
The transition follows six months of intensive collaboration among regulators, exchanges, depositories, custodians, registrars, stockbrokers and other market participants.
Industry stakeholders believe the successful implementation of the T+1 framework will enhance Nigeria’s attractiveness to both domestic and foreign investors while reinforcing its position as one of Africa’s most innovative and progressive capital markets.
The ceremony concluded with a symbolic closing gong to officially signal the commencement of the T+1 settlement regime, attended by regulators, market operators, stockbrokers and key players across the capital market ecosystem.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
