The Nigerian capital market has recorded a historic milestone with the successful transition to a T+1 settlement cycle, becoming the first market in Africa to adopt the shortened framework aimed at improving efficiency, reducing risk and boosting global competitiveness.
The new settlement system took effect on Monday, June 1, 2026, requiring all eligible trades to settle one business day after execution. It replaces the previous T+2 cycle introduced in November 2025.
Director-General of the Securities and Exchange Commission (SEC), Emomotimi Agama, described the development as a major turning point for the market during a ceremony held at the NGX Group House in Lagos.
“The era of T+1 has begun,” Agama said. “In just six months, Nigeria has moved from T+2 to T+1 settlement, joining advanced markets adopting faster systems. This shows Nigeria is ready for global capital competitiveness.”
He said the shorter settlement cycle reduces counterparty risk, cuts margin requirements and improves processing efficiency by about 80 per cent, placing Nigeria alongside markets such as the United States, Canada and India, ahead of Europe’s planned 2027 transition.
The change follows three years of planning, testing and simulations led by the SEC’s Settlement Cycle Review Committee chaired by Mrs Onome Komolafe.
Group Chairman of Nigerian Exchange Group (NGX Group), Umaru Kwairanga, explained that the new system means transactions now settle the next business day.
“Buy today, account is debited tomorrow; sell today, payment comes tomorrow,” he said, noting that the shift improves liquidity, speed and efficiency.
Managing Director and Chief Executive Officer of Central Securities Clearing System (CSCS) Plc, Shehu Yahaya Shantali, said the upgrade reflects years of market modernisation, moving from manual processes to automated, technology-driven systems.
He said the transition is not just about speed but a structural upgrade that strengthens efficiency and global competitiveness.
The milestone comes amid strong growth in the capital market, with the Nigerian Exchange (NGX) recording a market capitalisation of ₦149.88 trillion by end-2025, while domestic and foreign investments rose to ₦1.803 trillion by April 2026.
Chairman of CSCS and Group CEO of NGX Group, Temi Popoola, said the reform is part of a broader journey toward building a deeper and more efficient capital market that supports long-term economic growth.
Market operators, stockbrokers and custodians are currently upgrading systems to meet the tighter settlement timeline.
Regulators noted that the new cycle will require faster processing and greater automation, especially among smaller market participants adapting to the reduced settlement window.
