Nigeria’s capital market has recorded a major milestone with the successful transition to a T+1 settlement cycle, becoming the first market in Africa to adopt the shortened settlement framework aimed at improving efficiency, reducing risk, and boosting competitiveness.
The transition officially took effect on Monday and marks a shift from the previous T+2 cycle, meaning that securities transactions will now be settled one business day after a trade is executed, rather than two.
Market stakeholders say the move aligns Nigeria with emerging global standards and strengthens the country's appeal to both domestic and international investors.
Speaking at the T+1 Settlement Cycle Transition Ceremony in Lagos, the Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, described the development as a landmark achievement in the evolution of Nigeria’s capital market.
According to him, the transition demonstrates the market’s readiness to implement major structural reforms required to attract global capital and improve overall market efficiency.
“The era of T+1 has begun,” Agama said. “In just six months, Nigeria has successfully progressed from T+2 to T+1 settlement, joining a growing group of markets embracing faster and more efficient settlement cycles.”
He noted that shorter settlement periods help reduce counterparty risk, improve post-trade efficiency, and strengthen investor confidence, adding that the SEC remains committed to further modernising market infrastructure and operations.
In his goodwill message, the Group Chairman of NGX Group, Alhaji Umaru Kwairanga, described the transition as another important step in the ongoing transformation of Nigeria’s capital market.
Kwairanga added that milestones such as the T+1 transition reinforce confidence in market institutions and demonstrate the determination of stakeholders to build a more efficient and globally competitive investment environment.
Also speaking, the Group Managing Director and Chief Executive Officer of NGX Group, Temi Popoola, said the achievement represents a significant milestone but should be viewed as part of a broader effort to deepen the market and enhance its global standing.
Popoola noted that a more liquid, efficient, and competitive capital market would play a critical role in supporting long-term economic growth and capital formation in Nigeria.
Meanwhile, the Managing Director and Chief Executive Officer of the Central Securities Clearing System (CSCS) Plc, Haruna Jalo-Waziri Shantali, said the transition highlights the operational readiness of Nigeria’s post-trade ecosystem.
He explained that the shorter settlement timeline would improve transaction speed, enhance liquidity efficiency, and reduce settlement-related exposure across the market.
According to Shantali, the move represents more than just a reduction in settlement timelines, describing it as a strategic upgrade of market infrastructure that will improve resilience and competitiveness.
The ceremony concluded with a symbolic closing gong to mark the official commencement of the T+1 settlement cycle.
The event was attended by regulators, exchange executives, stockbrokers, market operators, and leaders of various trade associations within the capital market ecosystem.
The transition follows six months of industry-wide preparations involving regulators, exchanges, custodians, registrars, depositories, and other stakeholders, positioning Nigeria among a growing number of global markets adopting faster settlement cycles to improve efficiency and market resilience.
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