Investors to enjoy quicker trade settlements from June 1

By Chukwuma Umeorah

The Securities and Exchange Commission (SEC) has announced that the Nigerian capital market will transition to a

quicker trade settlements (T+1 settlement cycle) for equities and commodities transactions from June 1, 2026, in a move aimed at shortening trade completion timelines and aligning the market with international settlement standards. The Commission disclosed in a circular that all eligible transactions cleared and settled by the Central Securities Clearing System (CSCS) will be settled one business day after the trade date, replacing the current T+2 framework introduced in November 2025.

According to the SEC, Friday, May 29, 2026, will be the final trading day under the T+2 settlement cycle, while trades executed on both May 29 and June 1 will settle on June 2. “Further to the successful implementation of the T+2 settlement cycle on November 28, 2025, and 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 for equities and commodities transactions cleared and settled by the Central Securities Clearing System (CSCS), with effect from Monday, June 1, 2026,” the Commission stated.

The regulator said the migration forms part of broader market modernisation efforts intended to improve operational efficiency, strengthen risk management, reduce counterparty exposure, and improve liquidity within the market.

“Accordingly, all eligible trades executed in the Nigerian capital market shall settle one business day after the trade date (T+1),” the Commission added.

The development marks another phase in ongoing reforms within Nigeria’s capital market infrastructure, coming months after the adoption of the T+2 settlement cycle. Market operators have increasingly pushed for faster settlement timelines as part of efforts to improve market competitiveness and attract broader investor participation.

SEC directed all capital market operators, securities exchanges, custodians, registrars, issuers, clearing and settlement infrastructure providers, and other stakeholders to ensure operational readiness before the implementation date. “Market participants are expected to review and align their systems, processes, controls, and operational workflows ahead of the implementation date,” the Commission said.

The transition also comes amid wider regulatory changes in the capital market following President Bola Tinubu’s assent to the Investments and Securities Bill 2025, which repealed the Investments and Securities Act of 2007 and introduced a new legal framework for the sector.

SEC said it would continue stakeholder engagements and monitor implementation to ensure a seamless transition to the new settlement structure.