The Securities and Exchange Commission (SEC) is set to revolutionize Nigeria's capital market by implementing a T+1 settlement system for equities and commodities starting June 1, 2026. This transition, aimed at enhancing market efficiency and liquidity, represents a significant shift from the traditional T+2 settlement timeframe.
This announcement follows growing demands from market participants for quicker transaction finality, which is crucial in today's fast-paced trading environment. The SEC's move is expected to attract more investors, as shorter settlement times can reduce counterparty risk and increase capital turnover. "The T+1 settlement will not only streamline operations but also position Nigeria as a competitive player in the global market," stated Lamido Yuguda, the SEC's Director-General.
As the SEC embarks on this ambitious rollout, stakeholders will be closely monitoring its impact on trading volumes and market dynamics. The success of this initiative may pave the way for further reforms aimed at modernizing Nigeria's financial landscape, potentially setting a precedent for other African markets to follow. The shift to T+1 could redefine trading strategies and investor engagement in the region.
