The Securities and Exchange Commission (SEC) has announced that Friday, May 29, 2026, will mark the final trading day under the current T+2 settlement cycle as the Nigerian capital market prepares to migrate to a faster T+1 settlement framework aimed at improving liquidity, reducing transaction risks and aligning the market with global operational standards.

The SEC, however, reiterated its commitment to strengthening market integrity, boosting investors’ confidence and driving the development of a resilient and internationally competitive Nigerian capital market.

Under the transition arrangement as released by the Commission, trades executed on Friday, May 29, 2026, and Monday, June 1, 2026, will both settle on Tuesday, June 2, 2026, ahead of the full commencement of the T+1 settlement regime effective Monday, June 1, 2026.

The SEC said the new settlement structure would apply to all eligible equities and commodities transactions cleared and settled by the Central Securities Clearing System (CSCS), noting that the initiative represents another milestone in the ongoing modernisation of Nigeria’s capital market infrastructure.

According to the Commission, the migration follows the successful implementation of the T+2 settlement cycle introduced on November 28, 2025, and reflects its commitment to building a more efficient, transparent and globally competitive market environment.

SEC stated that shortening the settlement cycle from two business days to one business day after trade execution is expected to strengthen market efficiency, enhance risk management, reduce counterparty exposure and improve liquidity across the market.

The Commission noted that all eligible trades executed from Monday, June 1, 2026, onward would automatically fall under the T+1 settlement cycle.

To ensure a seamless transition, the SEC directed Capital Market Operators (CMOs), securities exchanges, clearing and settlement infrastructure providers, custodians, registrars, issuers and other stakeholders to take all necessary steps toward operational readiness and compliance with the new framework.

The regulator urged market participants to review and align their systems, internal controls, operational processes and transaction workflows ahead of the implementation date to avoid disruptions when the new settlement regime takes effect.

The Commission also stated that it would continue engaging stakeholders and closely monitoring the implementation process to ensure an orderly migration to the T+1 framework.