Nigeria’s capital market is set to move to even faster settlement of stock transactions, with the country’s central clearing infrastructure announcing plans to shift to a one-day settlement cycle from late May.
Central Securities Clearing System Plc said preparations are underway to transition the Nigerian market to a T+1 settlement cycle starting May 29, 2026, a change expected to accelerate the movement of funds and securities after trades.
Under the new system, trades in stocks and other instruments except fixed income and commodities, will be completed one business day after they are executed, reducing the time investors wait to receive cash or shares.
“The transition to T+1 represents the next phase in the continued evolution of our market infrastructure and reflects the industry’s commitment to strengthening post-trade efficiency, reducing settlement risk, and aligning with global best practices,” the clearing system said in a notice to market participants.
The announcement comes just months after Nigeria upgraded its settlement system to T+2 in November 2025, shortening the previous T+3 cycle that had been in place for years.
At the time, the change was widely seen as a major step toward modernising Nigeria’s post-trade infrastructure and bringing the market closer to global standards.
Now the country is pushing even further.
CSCS said all trades executed in the market will settle on a T+1 basis from May 29. As part of the transition, trades executed on May 28, the final T+2 trading day, and those carried out on May 29, the first T+1 trading day, will both settle on June 1.
The move requires coordination across the market ecosystem, including exchanges, brokers, custodians, registrars, settlement banks and institutional investors.
CSCS said industry-wide engagements and technical readiness activities are already underway to ensure participants update their systems and operational processes ahead of the transition.
Faster settlement cycles are increasingly becoming the global standard for equity markets, as they reduce counterparty risk — the risk that one side of a trade fails to deliver cash or securities.
Shorter settlement periods can also improve market liquidity because investors gain quicker access to funds after selling shares and faster ownership of securities after buying them.
The shift will affect secondary market transactions on major Nigerian trading platforms including the Nigerian Exchange Group, the NASD OTC Securities Exchange and the Lagos Commodities and Futures Exchange.
CSCS urged market participants to review internal systems and workflows to ensure readiness for the new settlement framework.
If successfully implemented, the move would place Nigeria among markets globally adopting shorter settlement cycles as exchanges compete to improve efficiency, attract investors and strengthen financial infrastructure.
Understanding the New T+1 Settlement Cycle
What is T+1?
T+1 means a stock trade is completed one business day after it is executed. If an investor buys shares on Monday, the transaction is finalised on Tuesday.
What does the “T” mean?
“T” stands for Trade Day — the day the investor buys or sells securities.
How was it done before?
– T+3 (old system): Settlement took three business days.
– T+2 (introduced Nov 2025): Settlement takes two days.
– T+1 (coming May 2026): Settlement will take one day.
Why does this matter?
Faster settlement reduces risk if a buyer or seller fails to complete a trade, allows investors to access cash or shares more quickly and improves overall efficiency of the capital market.
Which markets will use T+1?
The change will apply to secondary market trades on:
– Nigerian Exchange Group (NGX)
– NASD OTC Securities Exchange
– Lagos Commodities and Futures Exchange
Which instruments are not affected?
This affects all tradable instruments except for fixed income instruments and commodities which already settle on a T+2 cycle.
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