- in European Union
- in European Union
- within International Law, Consumer Protection and Tax topic(s)
Nigeria’s capital market transitioned to a T+1 settlement cycleon 1 June 2026, representing a major milestone in the ongoing modernisation of its market infrastructure. In practical terms, this means that a qualifying trade executed on a trading day settles on the next business day, enabling buyers to receive securities and sellers to receive funds more quickly than under longer settlement cycles. By shortening the period between trade execution and settlement, the framework reduces counterparty exposure, improves liquidity and enhances market efficiency.
For years, Nigeria’s capital market operated a T+3 settlement cycle, followed by a shift to T+2 introduced by the Securities and Exchange Commission (SEC) on 28 November 2025. While T+2 reduced settlement time, a gap remained between trade execution and final settlement, exposing the market to counterparty risk, delayed liquidity access and operational inefficiencies. The transition is reshaping operational expectations for brokers, custodians, settlement banks and institutional investors, particularly in relation to funding certainty, settlement discipline, and post-trade compliance.
This article examines the regulatory and institutional framework supporting the transition, its practical implications for market participants, and the reasons the reform matters for market efficiency, risk management, liquidity and investor confidence.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
[View Source]