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The Central Securities Clearing System (CSCS) has announced that Nigeria’s capital market will transition to a T+1 settlement cycle effective May 29, in a move aimed at improving market efficiency and aligning with global best practices.
A T+1 settlement cycle means that trades are completed one business day after the transaction date, replacing the current T+2 framework, where settlement occurs two days after execution.
According to the CSCS, the shift represents a significant milestone in the ongoing modernisation of Nigeria’s capital market infrastructure. The initiative follows earlier approval by the Securities and Exchange Commission Nigeria (SEC), which has been driving reforms to enhance market performance.
The clearing house noted that the new system is expected to improve post-trade efficiency, reduce settlement risks, and accelerate the transfer of securities and funds within the market.
Under the new framework, all trades executed from Friday, May 29, will be settled on a T+1 basis.
CSCS also clarified transitional arrangements for market participants. Trades executed on Thursday, May 28—the final trading day under the T+2 cycle—and those carried out on Friday, May 29—the first day of T+1—will both be settled on Monday, June 1.
The agency emphasised that successful implementation will require coordinated readiness across the market ecosystem, including exchanges, stockbrokers, custodians, registrars, settlement banks, and institutional investors.
The transition to T+1 places Nigeria alongside other global markets adopting shorter settlement cycles, reflecting a broader push toward faster, more efficient, and technology-driven capital market operations.
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