The Central Securities Clearing System (CSCS) Plc has officially launched Nigeria’s T+1 settlement cycle, completing the country’s transition from a two-day settlement framework and aligning the Nigerian capital market with some of the world’s most advanced financial markets.
The milestone was announced at a market-wide ceremony attended by the Securities and Exchange Commission (SEC), Nigerian Exchange Group (NGX Group), market operators, custodians, registrars, stockbrokers and institutional investors.
The new framework means securities transactions executed on a trading day will now settle on the next business day, reducing the waiting period between trade execution and final settlement.
Stakeholders say the development is expected to improve market efficiency, enhance liquidity and strengthen investor confidence in Nigeria’s capital market.
What they are saying:
Speaking at the launch event on Monday, June 1, the Managing Director and Chief Executive Officer of CSCS, Mr. Shehu Shantali, described the transition as a defining moment in the evolution of Nigeria’s capital market. He noted that the move represents the culmination of more than three decades of post-trade infrastructure development and modernization.
- “Today’s transition to T+1 represents not a single event, but the latest chapter in a modernization journey that has been underway for more than three decades.”
- “Before the introduction of electronic clearing and settlement infrastructure, investors often waited between three and six months to receive share certificates after transactions.”
- “Nigeria moved from manual paper-based settlement to T+5 settlement in 1997 following the launch of CSCS operations.”
- “The new T+1 framework became effective after extensive market-wide readiness assessments and technology upgrades.”
Shantali added that the transition was supported by significant investments in API-enabled connectivity, straight-through processing capabilities, automated settlement systems, custodian integration infrastructure, business continuity enhancements and cybersecurity upgrades.
More insights
Market stakeholders described the migration as a major step toward improving liquidity, reducing settlement risk and enhancing the attractiveness of the Nigerian capital market to both local and foreign investors.
- NGX Group Chief Executive Officer, Mr. Temi Popoola, said the development forms part of a broader strategy to deepen the capital market and support future growth initiatives, including larger listings, digital assets and expanded fixed-income market participation.
- Chairman of NGX Group, Dr. Umaru Kwairanga, noted that investors who sell securities will now receive proceeds on the following business day, while buyers will have their accounts debited within the same timeframe.
- According to him, the shorter settlement cycle will improve market liquidity, accelerate capital recycling and reduce counterparty and settlement risks.
- He added that the framework will increase operational efficiency and strengthen Nigeria’s competitiveness among global investment destinations.
SEC Director-General, Dr. Emomotimi Agama, described the launch as a watershed moment for the Nigerian capital market, noting that it reflects the industry’s commitment to global best practices, investor protection and long-term market development.
What you should know
Nigeria’s migration to T+1 follows a phased implementation programme coordinated by the SEC-led Settlement Cycle Review Committee and first announced earlier this year. The initiative was designed to ensure a seamless transition while minimizing disruption to market activities.
- The transition roadmap began in 2023 when the committee was inaugurated to assess the readiness of the Nigerian market for shorter settlement cycles.
- Stakeholders subsequently carried out technology reviews, market simulations, operational assessments and industry-wide consultations.
- The market successfully migrated from T+3 to T+2 settlement on November 28, 2025, creating an intermediate stage before the final transition to T+1.
- Regulators previously stated that the move was aimed at aligning Nigeria with global markets such as the United States, Canada and India, which have adopted shorter settlement cycles to improve efficiency and reduce systemic risk.
With T+1 now fully operational, industry participants say the focus will increasingly shift toward future innovations, including enhanced digital market infrastructure, greater automation, deeper liquidity pools and the eventual possibility of same-day settlement as global market standards continue to evolve.
