Nigeria’s capital market has entered a new phase of development with the successful commencement of the T+1 settlement cycle, a landmark reform expected to enhance market efficiency, reduce risks, improve liquidity, and strengthen the country’s attractiveness to both domestic and foreign investors.
The transition, formally unveiled at a ceremony held at the NGX Group House in Lagos on Monday, marks the reduction of the securities settlement period from two business days after a trade (T+2) to one business day (T+1), bringing Nigeria in line with some of the world’s most advanced financial markets.
Speaking at the event, Director-General of the Securities and Exchange Commission (SEC), Emomotimi Agama described the development as a watershed moment in the history of Nigeria’s capital market, saying it reflects the country’s readiness to compete at the highest levels of global finance.
“The T+1 settlement cycle is now live, and with it, a new era has begun,” Agama said.
According to him, the migration to T+1 represents a significant leap forward in the market’s modernization journey, following the successful transition from T+3 to T+2 settlement in November 2025.
He noted that while the earlier move to T+2 was a major milestone, regulators and market operators had always viewed it as an intermediate step toward a faster and more efficient settlement environment.
Agama explained that under the new framework, securities transactions executed in the Nigerian capital market will now be completed within one business day, enabling investors to gain quicker access to funds and securities while reducing the risks associated with delayed settlement.
He said the shorter settlement cycle would significantly reduce counterparty risks, improve operational efficiency, lower collateral and margin requirements, and increase the speed with which investors can redeploy capital.
“What this means for investors is simple. If an investor sells shares today, the proceeds become available tomorrow. Capital moves faster, liquidity improves, and the overall investment experience becomes more efficient,” he said.
The SEC boss emphasized that the reform also carries significant implications for foreign investor participation.
According to him, one of the most frequently cited concerns by international investors regarding emerging markets is operational risk arising from settlement delays and inefficiencies.
“T+1 settlement removes one of the most significant barriers to foreign investment. Global investors want markets that operate efficiently and align with international standards.
Today, Nigeria is speaking that language,” Agama stated.
He disclosed that markets operating T+1 settlement currently account for approximately 60 per cent of global market capitalization, noting that Nigeria has now joined countries such as the United States, Canada, Mexico and India in adopting the faster settlement regime.
Agama added that the Commission’s long-term vision extends beyond T+1, revealing that the SEC is already considering the transition to same-day settlement (T+0) as part of its broader capital market modernization agenda.
He said the implementation of the Investments and Securities Act (ISA) 2025 and other ongoing reforms have provided the regulatory foundation necessary to support such innovations.
The SEC Director-General also highlighted the remarkable growth recorded by the Nigerian capital market in recent years, noting that total market capitalization reached N149.88tn at the end of 2025, while the Nigerian Exchange All-Share Index advanced by 49.17 per cent during the year.
He further disclosed that domestic and foreign portfolio investments on the Nigerian Exchange climbed to N1.803trn in April 2026, representing a year-on-year increase of over 274 per cent.
Similarly, the Managing Director and Chief Executive Officer of the Central Securities Clearing System (CSCS), Shehu Shantali described the transition as the culmination of more than three decades of market modernization efforts.
According to him, the achievement represents far more than a reduction in settlement timelines, but rather reflects the collective ambition of stakeholders to build a more efficient, resilient, competitive and globally aligned capital market.
He said the Nigerian market has evolved significantly from an era dominated by manual processes and physical share certificates, when investors often waited between three and six months to receive certificates after transactions.
Shantali recalled that the establishment of CSCS in 1992 and the commencement of its operations in 1997 transformed the post-trade infrastructure landscape by introducing automated clearing, settlement and electronic custody of securities.
“Settlement periods were reduced from several months to T+5, later to T+3, then T+2, and today we have successfully achieved T+1. This is the latest chapter in a modernization journey that has been underway for more than three decades,” he said.
The CSCS chief noted that the journey toward T+1 formally began in 2023 when the SEC inaugurated a broad-based industry committee to evaluate market readiness for shorter settlement cycles.
He commended the leadership of the SEC, the Settlement Cycle Review Committee chaired by Mrs. Onome Komolafe, exchanges, custodians, brokers, registrars, fund managers and other market operators whose collaboration made the transition possible.
Shantali revealed that over the last three years, CSCS invested heavily in technology infrastructure, including API-enabled integrations, enhanced straight-through processing systems, automated settlement engines, cybersecurity upgrades, digital self-service platforms and expanded business continuity capabilities.
According to him, these investments have strengthened connectivity across the market ecosystem, improved operational resilience and enhanced integration with global financial messaging standards.
He stressed that T+1 settlement strengthens Nigeria’s position within the global investment landscape by aligning the country’s market infrastructure with international best practices and investor expectations.
“The benefits are substantial. T+1 reduces counterparty risk, improves liquidity, enhances operational efficiency, strengthens investor confidence and increases the resilience of the financial system. Most importantly, it reinforces Nigeria’s competitiveness in attracting global capital,” Shantali said.
He added that while the transition is a major milestone, it is not the final destination, as global markets are already exploring same-day and real-time settlement models.
According to him, CSCS remains committed to driving the next phase of market innovation through continued investments in technology, operational resilience and stakeholder collaboration.
Market operators and stakeholders at the event described the commencement of T+1 settlement as one of the most significant structural reforms in recent years, capable of deepening liquidity, enhancing transparency and supporting the long-term growth ambitions of Nigeria’s capital market.
The development is also expected to support the implementation of the Second Nigerian Capital Market Master Plan and strengthen the market’s contribution to economic growth, infrastructure financing and wealth creation.
With the successful launch of T+1 settlement, industry stakeholders believe Nigeria has taken another decisive step toward building a world-class capital market capable of competing effectively for global investment flows.
In his goodwill message, the Group Chairman of NGX Group, Alhaji Umaru Kwairanga, described the transition as a key step in the ongoing transformation of Nigeria’s capital market. He said the development underscores the shared commitment of stakeholders to strengthening market institutions, deepening investor confidence, and enhancing the market’s role in supporting economic growth and capital formation. “Milestones such as this reinforce confidence in our institutions and demonstrate our collective determination to build a more efficient and globally competitive capital market,” he stated.
Also speaking at the event, the Chairman of Central Securities Clearing System (CSCS) Plc Group Managing Director/Chief Executive Officer of NGX Group, Temi Popoola, said the transition represents a critical step in the broader evolution of Nigeria’s capital market. He noted that while the achievement marks a significant milestone, it is part of a longer journey toward building a deeper, more liquid, and more globally competitive market capable of supporting sustained economic growth and capital formation. “While today is a significant milestone, it is not the destination. It is part of a broader journey toward building a deeper, more liquid, efficient, and globally competitive capital market capable of supporting long-term economic growth and capital formation,” he said.
T+1 Settlement Goes Live, Positioning Nigeria For Global Capital Flows is first published on The Whistler Newspaper
