SEC Announces T+1 Settlement Rollout for Equities and Commodities Starting June 1

The Securities and Exchange Commission (SEC) has announced that, in line with its mandate to foster an efficient, fair, and transparent capital market, equities and commodities transactions will shift to a T+1 settlement cycle starting Monday, June 1, 2026.

The SEC’s notice provides a detailed framework that capital‑market operators and related stakeholders are encouraged to adopt in preparation for this change.

The Commission explained that the move to T+1 is part of its broader market‑modernisation agenda, aimed at improving market efficiency, strengthening risk management, reducing counterparty exposure, enhancing liquidity, and aligning Nigeria’s capital market with international standards and best practices.

Under the new framework, all eligible trades executed in the Nigerian capital market will settle one business day after the trade date, cutting the current two‑business‑day settlement period in half.

“Importantly, the final trading day under the existing T+2 cycle will be May 29, 2026,” the notice states. “Specifically, trades executed on both May 29 and June 1, 2026, will settle on the same date, June 2, 2026, creating a seamless convergence window that supports an efficient transition.”

“From June 1 onward, all trades will operate under the T+1 framework, and it is essential for all capital‑market operators, securities exchanges, clearing and settlement infrastructure providers, custodians, registrars, issuers, and other stakeholders to ensure they are fully operationally ready by the commencement date,” the SEC added.

Implementation highlights include: effective Monday, June 1, 2026, all eligible trades shall settle on a T+1 basis; Friday, May 29, 2026, will be the final trading day under the existing T+2 settlement cycle; trades executed on Friday, May 29, 2026, and Monday, June 1, 2026, will both settle on Tuesday, June 2, 2026; and all trades executed from Monday, June 1, 2026, onward will be subject to the T+1 settlement cycle.

This strategic move positions Nigeria further on a trajectory of convergence with developed‑market standards, following the United States, which migrated to T+1 in May 2024, as well as Canada and Mexico. India has also made notable strides in compressing its settlement cycle and is piloting instantaneous settlement for select trades.

For retail investors, the change means quicker access to proceeds from share sales. Institutional players and custodians are expected to prioritise reconfiguring their back‑office systems and reconciliation workflows to align with the T+1 cycle before June 1.

The recent reforms reflect Nigeria’s commitment to bridging the infrastructure gap with more developed markets and signal an attractive opportunity for foreign institutional investors.

The transition from T+3 to T+2 and now to T+1 in less than seven months underscores the SEC’s proactive approach to fostering a more dynamic and robust capital market.

“Market participants are expected to review and align their systems, processes, controls, and operational workflows ahead of the implementation date,” the Commission said. “The Commission will continue to engage stakeholders and monitor the implementation process to ensure an orderly and seamless transition. We remain committed to strengthening market integrity, enhancing investor confidence, and fostering the development of a modern, resilient, and globally competitive Nigerian capital market,” it added.