The Securities and Exchange Commission (SEC) has set 5:00 p.m. on Trade Date plus One (T+1) as the settlement deadline for equities and commodities transactions in Nigeria’s capital market.
The Commission disclosed this in a public notice signed by its management on August 12, 2026, providing further clarification on the implementation of the T+1 settlement cycle.
The latest directive builds on the SEC’s earlier circulars issued on June 3, 2025, regarding the T+2 settlement framework, and May 15, 2026, announcing the transition to T+1.
What you should know
The T+1 settlement cycle means that eligible securities transactions must be completed one business day after the trade date, rather than the previous two-business-day cycle under T+2.
The SEC’s latest clarification establishes a specific 5:00 p.m. deadline for completing settlement on the applicable settlement date.
The move is part of Nigeria’s broader effort to modernise its capital market infrastructure, improve transaction efficiency and align the market with shorter global settlement cycles.
What the data is saying
Settlement deadline fixed at 5:00 p.m.
Under the SEC’s directive, settlement for equities and commodities transactions must be completed by 5:00 p.m. on T+1.
This provides market participants with a clear deadline for completing their settlement obligations.
Nigeria transitions from T+2 to T+1
The latest clarification follows the SEC’s May 15, 2026 circular announcing the transition from T+2 to T+1 settlement.
Under the previous T+2 framework, transactions were settled two business days after the trade date.
The T+1 framework reduces that period to one business day, shortening the settlement cycle by 24 hours.
SEC builds on earlier framework
The Commission had previously issued a circular on June 3, 2025, concerning the T+2 settlement framework before subsequently announcing the transition to T+1.
The August 12 notice therefore provides additional operational clarity as the shorter settlement cycle takes effect across the relevant segments of the Nigerian capital market.
What the shorter cycle means
A T+1 system can reduce the period during which investors and market participants remain exposed to settlement-related risks.
It can also improve the efficiency of capital deployment by allowing investors to receive securities or settlement proceeds sooner.
For brokers, custodians, exchanges, clearing institutions and investors, the shortened cycle also requires timely processing of trade confirmations, funding, securities delivery and other settlement obligations.
