SEC To Launch Faster Trade Settlement System Starting June 1

The Securities and Exchange Commission (SEC) has announced that Nigeria’s capital market will adopt a faster trade settlement cycle, known as T+1, effective June 1, 2026, in a significant move aimed at modernising market operations and improving efficiency.

According to IReporter Online, the reform will shorten the settlement period for eligible equities and commodities transactions from the current two-business-day cycle (T+2) to one business day after trade execution (T+1), marking a major shift in how transactions are processed in the Nigerian capital market.

The Commission disclosed in a circular issued on May 18, 2026, that the transition is part of broader efforts to strengthen market efficiency, reduce transactional risks, enhance liquidity, and align Nigeria’s financial market structure with global best practices.

It further stated that the final trading day under the existing T+2 framework will be Friday, May 29, 2026. Trades executed on May 29 as well as those conducted on Monday, June 1, 2026, will both be settled on Tuesday, June 2, 2026, to ensure a seamless transition into the new system.

From June 1 onward, all transactions will operate under the T+1 settlement regime. The SEC emphasized that all capital market operators, exchanges, clearing and settlement infrastructure providers, custodians, registrars, issuers, and other stakeholders must ensure full operational readiness before the implementation date.

The Commission explained that the new system is expected to reduce counterparty exposure, strengthen risk management frameworks, and enable investors to access proceeds from securities sales more quickly, thereby improving overall market liquidity.

It added that retail investors stand to benefit from faster access to funds, while institutional investors and market operators are expected to adjust internal systems and reconciliation processes to accommodate the new structure.

The SEC also noted that the reform enhances Nigeria’s attractiveness to foreign institutional investors by positioning the market in line with globally competitive financial systems. It highlighted that countries such as the United States, Canada, and Mexico have already implemented the T+1 settlement cycle, while India is experimenting with instant settlement for select trades.

According to the Commission, Nigeria’s transition from T+3 to T+2 and now to T+1 within a relatively short period reflects its commitment to building a more efficient and resilient capital market infrastructure.

Market participants have been urged to review and align their systems, processes, and operational controls ahead of the rollout date to avoid disruptions.

The SEC reaffirmed its commitment to ensuring a smooth transition, stating that it will continue engaging stakeholders and monitoring implementation closely to safeguard market integrity, enhance investor confidence, and support the development of a modern and globally competitive Nigerian capital market.