Nigeria's capital market has entered a new phase of modernization following the official launch of the T+1 settlement cycle by the Central Securities Clearing System (CSCS) Plc, aligning the country with leading financial markets.
The transition, unveiled on June 1 at a market-wide ceremony attended by the Securities and Exchange Commission (SEC), Nigerian Exchange Group (NGX Group), stockbrokers, registrars, custodians and institutional investors, reduces the settlement period for securities transactions from two business days to one. Trades executed today will now be settled on the next business day.
For market participants, the shift is expected to improve liquidity, reduce settlement risk and strengthen investor confidence.
CSCS Managing Director and Chief Executive Officer, Mr. Shehu Shantali, described the development as the latest milestone in a modernization journey spanning more than three decades. He recalled that investors once waited between three and six months to receive share certificates before electronic clearing and settlement systems were introduced.
According to Shantali, Nigeria's transition from manual processes to a T+5 settlement cycle began in 1997 with the commencement of CSCS operations. The move to T+1 followed extensive market readiness assessments and technology upgrades, supported by investments in API-enabled connectivity, straight-through processing, automated settlement systems, custodian integration infrastructure, business continuity measures and enhanced cybersecurity.
Industry leaders say the shorter settlement cycle will make the market more efficient and competitive.
NGX Group Chief Executive Officer, Mr. Temi Popoola, said the reform supports broader plans to deepen the capital market and prepare for future growth areas, including larger listings, digital assets and increased participation in fixed-income markets.
Chairman of NGX Group, Dr. Umaru Kwairanga, noted that investors selling securities will now receive proceeds on the following business day, while buyers' accounts will be debited within the same timeframe. He said the framework would accelerate capital recycling, improve liquidity, reduce counterparty and settlement risks, and strengthen Nigeria's appeal to global investors.
SEC Director-General, Dr. Emomotimi Agama, described the launch as a watershed moment that reflects the market's commitment to investor protection, global best practices and long-term development.
The achievement follows a phased implementation programme coordinated by the SEC-led Settlement Cycle Review Committee. Established in 2023, the committee oversaw technology reviews, operational assessments, market simulations and industry-wide consultations aimed at ensuring a smooth transition.
A key milestone was reached on November 28, 2025, when the market migrated from T+3 to T+2 settlement, paving the way for the final move to T+1.
With the new framework now operational, attention is expected to shift toward further automation, stronger digital market infrastructure, deeper liquidity and, eventually, the possibility of same-day settlement as global standards continue to evolve.
For Nigeria, the launch represents another step in building a faster, more resilient and globally competitive capital market.
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