Nigeria Adopts T+1 Settlement Cycle for Securities

Nigeria has officially transitioned to a T+1 settlement cycle, significantly reducing the settlement period for securities transactions from two business days to one. The launch ceremony, held by the Nigerian Exchange Group (NGX) in Lagos, featured key stakeholders including Shehu Yahaya Shantali, Managing Director and Chief Executive Officer of Central Securities Clearing System (CSCS), and Dr.

Emomotimi Agama, Director General of the Securities and Exchange Commission (SEC). Shantali described this transition as a defining moment in the evolution of the Nigerian capital market, emphasizing the reduction in settlement timelines from several months to just one day.

The journey towards T+1 began in 2023 with the SEC inaugurating a broad-based industry committee to assess market readiness. The CSCS has invested heavily in infrastructure to support this transition, which is expected to improve liquidity and reduce counterparty risk.

This move aligns Nigeria with global standards, as other countries like the United States and Canada plan to adopt similar settlement cycles by May 2024.