Nigeria Leads Africa with T+1 Settlement Cycle Transition

The Nigerian capital market has successfully transitioned to a T+1 settlement cycle, becoming the first market in Africa to adopt this shortened settlement framework. This milestone was announced during a ceremony in Lagos, led by Dr.

Emomotimi Agama, Director General of the Securities and Exchange Commission (SEC). The T+1 cycle allows for the settlement of transactions on the business day following the trade, improving efficiency and reducing risks for investors.

Previously, the market operated on a T+2 framework. This transition is part of broader efforts to align Nigeria's capital market with international standards and attract global capital.

The SEC has indicated plans to move towards a T+0 settlement in the near future. The Nigerian Exchange Limited (NGX) and the Central Securities Clearing System (CSCS) are also involved in this initiative, which is part of the ongoing reforms under the Investment Securities Act of 2025.

The transition is expected to enhance liquidity and investor experience significantly.