By Bassey Udo
The Securities and Exchange Commission (SEC) has set June 2026 as the deadline for the transition to a T+1 settlement cycle for equities and commodities transactions.
T+1, which is transaction plus one day, is set by the capital market regulator to ensure that all transactions involving equities and commodities are not allowed to stay beyond 24 hours after the trading day without being settled.
The Commission said the migration from the current T+2 to a T+1 settlement cycle was part of its ongoing market modernization initiatives aimed at enhancing market efficiency, strengthening risk management, reducing counterparty exposure, improving liquidity, and aligning the Nigerian capital market with international standards and global best practices.
“The transition is in furtherance to the Commission’s mandate to promote an efficient, fair, and transparent capital market,” the Commission said.
The transition notice published by the Commission on its website on May 18, 2026 outlines a comprehensive framework that demands all capital market operators and relevant stakeholders to adopt in preparation for this significant change.
The notice indicated that with the new framework all eligible trades executed in the Nigerian capital market would be settled 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,” the notice said.
“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, and 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.
The implementation highlights contained in the notice showed that effective Monday, June 1, 2026, all eligible trades shall settle on a T+1 basis, with Friday, May 29, 2026, as the final trading day under the existing T+2 settlement cycle, while trades executed on Friday, May 29, 2026, and Monday, June 1, 2026, shall both settle on Tuesday, June 2, 2026, and all trades executed from Monday, June 1, 2026, onward shall be subject to the T+1 settlement cycle.
The Commission said the strategic move further positions Nigeria 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. India has also made notable strides in compressing its settlement cycle and is piloting instantaneous settlement for select trades.
For retail investors, SEC said the T+1 settlement cycle means quicker access to proceeds from share sales, adding that institutional players and custodians must prioritize reconfiguring their back-office systems and reconciliation workflows to align with the T+1 cycle before the June 1 deadline.
SEC said the recent reforms in the capital market reflect Nigeria’s dedication to bridging the infrastructure gap with more developed markets and signify an attractive opportunity for foreign institutional investors.
“The journey from T+3 to T+2 and now to T+1 in less than seven months highlights the SEC’s proactive approach toward fostering a more dynamic and robust capital market,” the Commission said.
Urging market participants to review and align their systems, processes, controls, and operational workflows ahead of the implementation date, the Commission said it would continue to engage stakeholders and monitor the implementation process 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,” the Commission said.