SEC, operators complete preparations for faster trade settlement

Nigeria's capital market is on the cusp of a significant transformation with the upcoming migration to a T+1 settlement cycle, scheduled for June 1, 2026. Capital market operators have been diligently upgrading their software and technological systems to ensure operational readiness for this historic shift.

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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.

The new regulatory directive, approved by the Securities and Exchange Commission (SEC), will condense the post-trade clearing timeframe to just one business day following trade execution. This effectively replaces the existing T+2 protocol, which was implemented in late 2025. Under the T+1 system, secondary market transactions for equities and commodities matched on the Nigerian Exchange Limited, NASD OTC Exchange, and the Lagos Commodities and Futures Exchange will involve the concurrent exchange of cash and securities within a 24-hour cycle.

Market firms have implemented Straight-Through Processing extensions and Application Programming Interface portals to minimize human error and streamline trade matching and clearing validations. Shehu Shantali, Managing Director and CEO of the Central Securities Clearing System Plc, described the transition as a pivotal milestone. "The transition to T+1 represents another important milestone in the evolution of Nigeria’s capital market infrastructure," Shantali stated. "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."

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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.

Shantali emphasized that the compressed timeline was achieved through extensive collaboration between technology engineers, market infrastructure providers, and operators. The Association of Asset Custodians of Nigeria also confirmed system synchronization, with automated accounting platforms restructured to accommodate same-day trade matching confirmations. Babatunde Majiyagbe, President of the association, affirmed their commitment to supporting the regulators and infrastructure providers in this endeavor.

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Custodians have aligned their systems and processes with the shorter settlement cycle, reaffirming our commitment to supporting regulators, investors, and infrastructure providers.