Capital Market Switch To T+1 Settlement Cycle On May 29, 2026

Central Securities Clearing System (CSCS) Plc, has said that the Nigerian capital market is set to transition to a T+1 settlement cycle on May 29, 2026, aiming to enhance post-trade efficiency and reduce settlement risk.

CSCS in a statement said that “we are pleased to inform all stakeholders that preparations are underway for the transition of the Nigerian capital market to a T+1 Settlement Cycle, scheduled to take effect on May 29, 2026.

“The transition to T+1 represents the next phase in the continued evolution of our market infrastructure and reflects the industry’s commitment to strengthening post-trade efficiency, reducing settlement risk, and aligning with global best practices. Under the T+1 framework, trades will settle one business day after the trade date, enabling faster movement of securities and funds across the market ecosystem.”

It explained that “effective from May 29, 2026, all trades executed in the market will now settle on a T+1 basis that is, one business day after the trade date. “Trades executed on May 28, 2026, the last T+2 trade date and May 29, 2026, the first T+1 trade date will both settle on June 1, 2026.”

According to CSCS, this transition will require coordinated readiness across all market participants, including exchanges, brokers, custodians, registrars, settlement banks, and institutional investors. To support a seamless transition, industry-wide engagements, technical readiness activities, and awareness initiatives are being conducted to ensure all stakeholders are ready.”

It will be recalled that the Nigerian capital market officially transitioned to a T+2 settlement cycle for equities transactions on November 28, 2025. This change, driven by the Securities and Exchange Commission (SEC) and implemented by the Central Securities Clearing System (CSCS), reduces the settlement time from three business days (T+3) to two (T+2).

The settlement cycle will normally impact secondary market transactions and is to be implemented on the following exchanges: The Nigerian Stock Exchange (NGX), the NASD OTC Securities Exchange and, the Lagos Commodities & Futures Exchanges (LCFE).

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