By Ikugbadi Oluwasegun
Nigeria’s capital market recorded a major reform on Monday as it officially shifted from a T+2 to a T+1 settlement cycle, cutting the time it takes for cash and securities to exchange hands after a trade from two business days to one.
The transition was marked at the Closing Gong ceremony, attended by regulators, market operators, and stakeholders.
Under the new T+1 system, investors who buy or sell shares on the Nigerian Exchange will now have both cash and securities transferred within one business day. The move brings Nigeria in line with markets like the United States, India, and Canada, which adopted T+1 in recent years.
Shehu Yahaya Shantali, CEO Central Securities Clearing System, described the shift as more than just a faster timeline. “This achievement is a reflection of our commitment to building a more efficient, resilient, competitive, and globally aligned capital market,” Shantali said at the ceremony.
Dr. Emomotimi Agama, Director-General Securities and Exchange Commission, linked the reform to Nigeria’s broader economic goals. He said the faster settlement cycle will reduce counterparty risk, improve liquidity, and support the country’s push toward a $1 trillion economy.
What it means for investors
For retail and institutional investors, T+1 translates to quicker access to sale proceeds and tighter risk management. Key benefits include: Faster access to funds: Money from share sales is available within one day, not two, Improved capital circulation: Traders can reinvest proceeds more quickly, Reduced market risk Less exposure to price swings between trade date and settlement,
Global competitiveness: Aligns Nigeria with international best practice, making the market more attractive to foreign portfolio investors
The Nigerian Exchange, SEC, and CSCS spent months upgrading systems and coordinating with brokers, custodians, and registrars to ensure a smooth transition. Market operators say the reform addresses a long-standing demand from investors for speed and efficiency.
With T+1 now live, regulators say the next focus will be investor education and monitoring system performance to prevent settlement failures.
For Nigeria’s capital market, the shift is being framed as a step toward deeper liquidity and greater investor confidence.
