Lagos: 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 News Agency of Nigeria, the Central Securities Clearing System (CSCS) in a notice in Lagos, informed market stakeholders 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 tradi
ng day under the T+1 cycle, would both settle on Monday, June 1.
The 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 News Agency of Nigeria reports that the CSCS transitioned to a T+2 settlement cycle on Nov. 28, 2025, from the previous T+3 cycle.