Nigeria’s capital market has entered a new phase of development with the transition to the T+1 settlement cycle, a milestone that industry leaders say will enhance liquidity, improve operational efficiency, and boost investor confidence.
The transition, celebrated at a special ceremony hosted by the Central Securities Clearing System (CSCS) Plc in Lagos, marks the reduction of the settlement period for securities transactions from two business days after trade execution (T+2) to one business day (T+1).
Speaking at the event, the Managing Director of CSCS, Shehu Shagari, described the development as the culmination of more than three decades of market modernisation and infrastructure enhancement.
According to him, Nigeria’s capital market has evolved significantly from an era dominated by physical share certificates and lengthy settlement periods that often stretched between three and six months. The establishment of CSCS in 1992 and the commencement of operations in 1997 ushered in electronic custody, automated clearing, and settlement systems that reduced settlement timelines to T+5.
The market subsequently migrated to T+3 in 2000 and later to T+2 in November 2025 before achieving the latest T+1 milestone.
Shagari noted that the journey toward T+1 formally began in 2023 with the inauguration of a broad-based industry committee under the leadership of the Securities and Exchange Commission (SEC) to assess the market’s readiness for a shorter settlement cycle.
He said extensive consultations, technology assessments, process reviews, market simulations, and operational readiness evaluations were conducted over three years to ensure a seamless transition.
“The successful implementation of T+1 settlement represents another important milestone in the realisation of the objectives articulated within the Capital Market Master Plan and reinforces our commitment to building a world-class capital market that supports economic growth, investment attraction, and wealth creation,” he said.
Shagari highlighted several investments undertaken by CSCS to support the transition, including API-enabled integrations, enhanced straight-through processing capabilities, digital self-service platforms, automated settlement processes, improved cybersecurity infrastructure, and expanded business continuity frameworks.
He explained that the shorter settlement cycle would reduce counterparty risks, improve liquidity by enabling investors to access and redeploy capital faster, strengthen operational efficiency, and enhance overall market resilience.
“For institutional investors, it provides faster access to capital and greater settlement certainty, while retail investors benefit from a more efficient investment experience and improved confidence in the market,” he added.
Director-General of the Securities and Exchange Commission, Emomotimi Agama, described the launch of T+1 settlement as a watershed moment in the evolution of Nigeria’s capital market.
According to him, the achievement aligns with the long-term vision outlined in the Capital Market Master Plan and reflects the determination of stakeholders to position Nigeria among leading global financial markets.
“The T+1 settlement cycle is now alive, and with it, a new era has begun. Today is not a routine ceremony. It is a defining moment that demonstrates Nigeria’s readiness to compete at the highest levels of global finance,” Agama said.
He noted that the transition would ensure faster access to funds for investors and support broader efforts by the Federal Government to deepen wealth creation and democratize investment opportunities for Nigerians.
Agama also pointed to the impressive growth recorded in the market in recent years, including rising market capitalization and a significant increase in assets under management, which he said had expanded from about ₦3.6 trillion to nearly ₦10 trillion within two years.
The Group Chief Executive Officer of NGX Group and Chairman of CSCS, Temi Popoola, described the transition as part of a broader journey aimed at deepening liquidity, improving market depth, and strengthening technology infrastructure across the capital market ecosystem.
He said ongoing efforts are focused on enhancing trading systems, data infrastructure, and market connectivity while expanding opportunities in fixed income, private markets, and digital assets.
Similarly, Chairman of NGX Group, Umaru Kwairanga, said the new settlement framework reinforces Nigeria’s position as one of the most efficient markets globally.
He noted that investors who purchase securities will now receive them in their accounts the next business day, while sellers will receive proceeds within the same timeframe, resulting in quicker capital turnover and enhanced market efficiency.
Industry stakeholders at the event hailed the transition as a landmark achievement that aligns Nigeria with global best practices and strengthens its attractiveness to domestic and international investors.
While celebrating the accomplishment, market leaders emphasized that T+1 is not the final destination, noting that global discussions are already shifting toward same-day and real-time settlement systems.
