Nigeria's Capital Market to Shift to T+1 Settlement by 2026

The Central Securities Clearing System (CSCS) PLC announced a significant transition in Nigeria's capital market, moving from a T+2 to a T+1 settlement cycle by May 29, 2026. This change reflects Nigeria's commitment to aligning with global best practices in capital market operations.

The T+1 settlement will allow for faster liquidity, reduced counterparty risks, and improved market efficiency. Currently, Nigeria is preparing to implement this transition, which will make it the first African country to fully adopt T+1 equity settlement, surpassing countries like Tanzania and Zambia.

The transition is not merely a procedural change; it is a strategic move to modernize operations and reduce inefficiencies in the historically slow market. However, the shift to T+1 presents challenges, including the need for faster trade processes and enhanced technological infrastructure.

The successful implementation of T+1 is expected to strengthen Nigeria's financial ecosystem and attract foreign portfolio investors, signaling a commitment to a reliable and efficient capital market.