Nigerian capital market to adopt T+1 settlement cycle May 29

The Nigerian capital market will transition to a T+1 settlement cycle from May 29, as part of efforts to enhance market efficiency and align with global standards.

The transition will shorten the settlement period for trades, allowing transactions to be completed one business day after the trade date, instead of the current two-day cycle.

According to the Central Securities Clearing System (CSCS) in a notice on Monday in Lagos, market stakeholders are informed that the move represents the next phase in the development of Nigeria’s capital market infrastructure.

The CSCS stated that the new settlement cycle is expected to improve post-trade efficiency, reduce settlement risk and speed up the movement of securities and funds across the capital market.

It explained that all trades executed from Friday, May 29, would settle on a T+1 basis.

The company added that trades executed on Thursday, May 28, the final trading day under the T+2 cycle, and those executed on Friday, May 29, the first trading day under the T+1 cycle, would both settle on Monday, June 1.

“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,” the company stated.

Our correspondent reports that the CSCS transitioned to a T+2 settlement cycle on Nov. 28, 2025, from the previous T+3 cycle.