T+1 Settlement Cycle Takes Off June 1 – SEC
The Securities and Exchange Commission (SEC) says the transition to a T+1 settlement cycle for equities and commodities transactions will take effect from June 1.
The trade settlement cycle is the time between when a trade is executed in the market and when the buyer receives the securities and the seller receives the cash.
Under the T+1 settlement cycle, settlement occurs one business day after the trade date, and the buyer and seller receive securities and cash, respectively, one day after the trade is executed.
SEC, in a notice on Tuesday in Abuja, said the transition was to promote an efficient, fair, and transparent capital market.
The commission said the migration to a T+1 settlement cycle was part of its ongoing market modernisation initiatives aimed at enhancing market efficiency, strengthening risk management, reducing counterparty exposure.
SEC said other benefits were to improve liquidity and align the country’s capital market with international standards and global best practices.
The commission said it had outlined a comprehensive framework, urging all capital market operators and relevant stakeholders to adopt in preparation for this significant change.
According to SEC, with the new framework, all eligible trades executed in the Nigerian capital market will settle one business day after the trade date, effectively reducing the current two-business-day settlement period.
”Importantly, the final trading day under the existing T+2 cycle will be May 29, 2026.
”Specifically, trades executed on both May 29 and June 1, 2026, will settle on the same date, June 2, 2026, creating a seamless convergence window that supports an efficient transition.
“From June 1 onward, all trades will operate under the T+1 framework.
”It is essential for all capital market operators, securities exchanges, clearing and settlement infrastructure providers, custodians, registrars, issuers, and other stakeholders to ensure they are fully operationally ready by the commencement date.
”All trades executed from Monday, June 1, 2026, onward shall be subject to the T+1 settlement cycle,” the commission said.
SEC said the move further positioned the country on a trajectory of convergence with developed market standards, following in the footsteps of the United States, which migrated to T+1 in May 2024, along with Canada and Mexico.
The commission said the development for retail investors would mean quicker access to proceeds from share sales. ”Meanwhile, institutional players and custodians must prioritise reconfiguring their back-office systems and reconciliation workflows to align with the T+1 cycle before June 1.
”The recent reforms reflect Nigeria’s dedication to bridging the infrastructure gap with more developed markets and signify an attractive opportunity for foreign institutional investors,” SEC said.
The commission said the journey from T+3 to T+2 and now to T+1 in less than seven months highlighted SEC’s proactive approach toward fostering a more dynamic and robust capital market.
According to SEC, market participants are expected to review and align their systems, processes, controls, and operational workflows ahead of the implementation date.
SEC said they would continue to engage stakeholders and monitor the implementation processes to ensure an orderly and seamless transition.
”We remain committed to strengthening market integrity, enhancing investor confidence, and fostering the development of a modern, resilient, and globally competitive Nigerian capital market.”
