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Nigeria’s capital market operators have completed extensive technological and operational upgrades ahead of the country’s transition to a T+1 settlement cycle, scheduled to take effect on Monday, June 1, 2026.
The migration, approved by the Securities and Exchange Commission (SEC), will shorten the post-trade settlement period from the current T+2 cycle to one business day after trade execution, positioning Nigeria more closely with global market standards focused on faster clearing and improved liquidity.
Under the new framework, secondary market transactions involving equities and commodities executed across the Nigerian Exchange Limited (NGX), NASD OTC Exchange, and the Lagos Commodities and Futures Exchange (LCFE) will be fully settled within 24 hours through the simultaneous exchange of cash and securities.
Ahead of the implementation, market participants have accelerated software upgrades and workflow restructuring to ensure seamless execution under the compressed settlement window.
Firms across the ecosystem have deployed enhanced Straight-Through Processing (STP) systems and Application Programming Interface (API)-enabled platforms aimed at reducing manual intervention in trade matching, reconciliation, and clearing processes.
Speaking during an industry engagement session, Shehu Shantali, Managing Director and Chief Executive Officer of the Central Securities Clearing System (CSCS) Plc, described the transition as a significant milestone in the evolution of Nigeria’s capital market infrastructure.
“The transition to T+1 represents another important milestone in the evolution of Nigeria’s capital market infrastructure. It reflects the market’s readiness to embrace reforms that enhance efficiency, strengthen investor confidence, improve liquidity, and align Nigeria more closely with leading global markets,” Shantali said.
He noted that the successful migration reflects months of collaboration among regulators, exchanges, market infrastructure providers, and technology teams working to ensure operational readiness across the ecosystem.
“The successful implementation of T+1 is a product of extensive collaboration across the capital market ecosystem. We appreciate the commitment demonstrated by our regulator, the Securities and Exchange Commission, Exchanges, Trade Associations, market operators, and the T+1 Implementation Plan Committee,” he added.
At the custody level, market operators say systems have been synchronised to support faster trade confirmations and settlement timelines.
Babatunde Majiyagbe, President of the Association of Asset Custodians of Nigeria, confirmed that custodial institutions have upgraded their automated accounting systems to accommodate same-day trade matching and reconciliation between brokers and custodians.
“Custodians have aligned their systems and processes with the shorter settlement cycle, reaffirming our commitment to supporting regulators, investors, and infrastructure providers,” Majiyagbe stated.
The SEC has consistently advocated for a shorter post-trade settlement cycle, arguing that faster clearing timelines strengthen market efficiency, reduce counterparty risk, improve liquidity, and enhance investor confidence in the market.
According to the commission’s transition framework, Friday, May 29, 2026, will mark the final trading session under the T+2 settlement model.
As part of the transition arrangement, trades executed on Friday, May 29, and Monday, June 1, will both settle on Tuesday, June 2, 2026, after which the T+1 settlement framework becomes fully operational.
To commemorate the rollout, the CSCS, in collaboration with the Nigerian Exchange Group, is expected to host a Special Closing Gong Ceremony at NGX House in Lagos on Monday, bringing together regulators, market executives, and stakeholders to officially mark the implementation of the new settlement regime.
The transition is expected to improve capital efficiency, accelerate market transactions, and further deepen confidence in Nigeria’s capital market as it continues aligning with international best practices.
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