May 19, (THEWILL) — Nigeria’s Securities and Exchange Commission (SEC) has issued fresh guidance ahead of the country’s transition to a T+1 settlement cycle for equities and commodities transactions, a move to deepen market efficiency and align the local capital market with global standards.
In a notice signed by SEC management and published on Monday, May 18, 2026, the Commission directed all capital market operators and stakeholders to comply with a new operational framework before the implementation date of Monday, June 1, 2026.
Under the revised framework, all eligible trades executed in the Nigerian capital market will now settle one business day after the transaction date, replacing the current T+2 structure, which requires settlement in two business days.
According to the SEC, May 29, 2026, will be the final trading day under the existing T+2 regime, while trades executed on both May 29 and June 1 will settle simultaneously on Tuesday, June 2, creating a temporary convergence window to ensure a smooth transition.
The Commission said the reform forms part of its broader market modernisation strategy designed to improve liquidity, reduce settlement risk, and enhance investor confidence.
Market analysts note that shortening the settlement cycle reduces counterparty exposure by limiting the period between trade execution and settlement, thereby lowering the volume of unsettled transactions within the system.
The new structure is also expected to improve capital efficiency, as brokers, custodians, and institutional investors will gain faster access to cash and securities, enabling quicker reinvestment.
The SEC directed exchanges, custodians, registrars, clearing houses, issuers, and other market participants to achieve full operational readiness ahead of the rollout, warning that firms unable to adapt their systems risk settlement failures and possible regulatory sanctions.
Nigeria joins a growing list of markets, including the United States, Canada, and India, that have adopted shorter settlement cycles to improve market competitiveness and attract global investors.
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.
