The Nigerian capital market is preparing for a significant upgrade in its trading infrastructure, with the Central Securities Clearing System Plc announcing a transition to a T+1 settlement cycle effective May 29, 2026.
Under the new framework, securities trades, including the transfer of ownership and payment, will settle one business day after the trade execution date (T+1), down from the current T+2 cycle.
CSCS described the shift as "the next phase in the continued evolution of our market infrastructure," reflecting the industry's commitment to aligning with global best practices. The change will apply to secondary market transactions across key platforms, including the Nigerian Exchange (NGX), the NASD OTC Securities Exchange, and the **Lagos Commodities & Futures Exchange (LCFE). Fixed income instruments and commodities, which already operate on different cycles (such as T+2), will not be affected.
Trades executed on May 28, 2026 (the final T+2 trade date) and on May 29, 2026 (the first T+1 trade date) will both settle on June 1, 2026.
The announcement emphasizes the need for full readiness among all market participants—exchanges, brokers, custodians, registrars, settlement banks, and institutional investors. CSCS noted that industry-wide engagements, technical preparations, and awareness programs are underway to ensure a smooth rollout.
This move follows the market's recent shift to T+2 settlement for equities, which took effect on November 28, 2025, shortening the previous T+3 cycle. The progression to T+1 positions Nigeria closer to leading international standards, such as those in major global markets, and is expected to boost liquidity, lower counterparty exposure, and make the market more attractive to investors.
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