By Peter Omopo
Nigeria’s capital market will transition to a T+1 settlement cycle beginning May 29, 2026, according to the Central Securities Clearing System Plc.
The announcement was made in a notice issued to traders on Monday, indicating that preparations are underway for the transition aimed at strengthening the market’s post-trade infrastructure and improving operational efficiency.
The new development comes months after the market moved to a T+2 settlement cycle on November 28, 2025.
The Central Securities Clearing System explained that a settlement cycle refers to the period between the execution of a securities trade and the final exchange of cash and securities between the buyer and the seller. Under the T+1 framework, settlement will occur one business day after the trade is executed.
For instance, a trade carried out on Monday will be completed on Tuesday, marking a faster turnaround in the transfer of ownership and payment between parties.
According to the clearing system, the move to the T+1 cycle represents a major milestone for the Nigerian capital market as it is expected to reduce settlement risks, enhance operational efficiency and align the country’s market practices with global standards.
The notice stated that all trades executed from Friday, May 29, 2026, will be settled on a T+1 basis. It also explained that trades executed on Thursday, May 28, which will be the final T+2 trade date, and those executed on Friday, May 29, the first T+1 trade date, will both be settled on Monday, June 1, 2026.
The Central Securities Clearing System noted that the transition will require coordinated readiness among market participants including exchanges, brokers, custodians, registrars, settlement banks and institutional investors. It added that industry engagements and technical preparations are already ongoing to ensure a smooth transition.
Market participants were also advised to review their internal processes, operational workflows and systems to ensure compliance with the new settlement structure.
According to information on the organisation’s website, the change will affect all tradable instruments except fixed-income securities and commodities, which already operate on a T+2 settlement cycle.
The T+1 settlement cycle will apply mainly to secondary market transactions and will be implemented across major trading platforms including the Nigerian Stock Exchange, the NASD OTC Securities Exchange and the Lagos Commodities and Futures Exchange.
