Nigeria’s Capital Market Transitions to T+1 Settlement May 29

The Central Securities Clearing System Plc has announced the transition of Nigeria’s capital market to a T+1 settlement cycle effective May 29, 2026.

This was disclosed in a notice to traders on Monday.

The latest development comes months after the market transitioned to the T+2 settlement cycle on November 28, 2025.

According to the CSCS, a settlement cycle is the time span between the execution of a securities trade (T) and the final exchange of cash for securities between the buyer and seller.

T+1 is a settlement cycle where the completion of a securities trade, including the transfer of ownership and payment, occurs one business day after the trade is executed.

For example, a trade executed on Monday (Trade Day) will be settled by Tuesday (Trade Day + 1 business day).

In the notice to traders, CSCS said, “Preparations are underway for the transition of the Nigerian capital market to a T+1 settlement cycle, scheduled to take effect on Friday, May 29, 2026.

“The move to T+1 marks an important milestone in strengthening the market’s post-trade infrastructure, improving operational efficiency, reducing settlement risk, and aligning Nigeria with global best practices. Under this framework, trades will settle one business day after the trade date,” read part of the statement.

Some of the key highlights of the transition include that, effective Friday, May 29, 2026, all trades executed in the market will settle on a T+1 basis (one business day after the trade date).

Trades executed on Thursday, May 28, 2026 (the last T+2 trade date), and Friday, May 29, 2026 (the first T+1 trade date), will both settle on Monday, June 1, 2026.

“This transition requires coordinated readiness across all market participants, including exchanges, brokers, custodians, registrars, settlement banks, and institutional investors. Industry-wide engagements and technical readiness initiatives are ongoing to ensure a seamless transition.

“All market participants are encouraged to review their internal processes, systems, and operational workflows to ensure alignment with the new settlement framework. We appreciate your continued collaboration as the Nigerian capital market advances toward greater efficiency and global standards,” said the CSCS.

On its website on Monday, the CSCS revealed that the reduction impacts all tradable instruments except fixed-income instruments and commodities, which already settle on a T+2 cycle.

The T+1 settlement cycle will impact secondary market transactions and will be implemented on the following exchanges: the Nigerian Stock Exchange, the NASD OTC Securities Exchange, and the Lagos Commodities & Futures Exchange.