Nigeria’s capital market has made history with the successful transition to a T+1 settlement cycle, becoming the first in Africa to adopt the shortened framework aimed at improving efficiency, reducing risk, and strengthening global competitiveness.
The milestone was formally marked on Monday at a ceremony in Lagos, where regulators and market operators described the development as a watershed moment in the evolution of the country’s financial market infrastructure.
Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, said the transition signals Nigeria’s readiness to compete at the highest levels of global finance.
He noted that the market had moved from T+2 to T+1 within six months, aligning with a growing number of advanced markets adopting faster settlement cycles.
“The era of T+1 has begun,” Agama said, adding that the reform reflects Nigeria’s commitment to undertaking structural changes necessary to attract global capital.
He explained that shorter settlement cycles enhance post-trade efficiency, reduce counterparty risk, and improve investor confidence.
Under the T+1 regime, transactions executed in the market are settled within one business day, compared to two days previously.
This, according to the SEC, allows investors quicker access to funds, improves liquidity, and strengthens overall market integrity.
Providing a global context, Agama noted that countries such as the United States, Canada, and India have already adopted T+1 settlement, while several European markets are preparing to transition.
He added that markets operating the framework now account for a significant share of global capitalisation, making the shift critical for Nigeria’s competitiveness.
Group Chairman of NGX Group, Alhaji Umaru Kwairanga, described the development as a key step in the ongoing transformation of the Nigerian capital market.
He said the transition underscores the shared commitment of stakeholders to strengthening market institutions, deepening investor confidence, and enhancing the role of the market in economic growth and capital formation.
Also speaking, the Group Managing Director and Chief Executive Officer of NGX Group, Mr. Temi Popoola, said the transition represents an important milestone but forms part of a broader journey toward building a deeper and more liquid market.
He emphasised that sustained reforms are required to position the market for long-term growth.
Managing Director and Chief Executive Officer of Central Securities Clearing System (CSCS) Plc, Mr. Shehu Yahaya Shantali, said the achievement reflects the operational readiness and resilience of Nigeria’s post-trade ecosystem.
He explained that the transition would improve transaction speed, enhance liquidity efficiency, and reduce settlement exposure.
Shantali traced the market’s evolution from a manual, paper-based system where investors waited months to complete transactions to a modern, technology-driven ecosystem.
He said the latest upgrade represents the culmination of years of investment in infrastructure, automation, and stakeholder collaboration.
The transition followed six months of coordinated preparations involving regulators, exchanges, custodians, registrars, and other market participants.
Stakeholders said the move is expected to deepen liquidity, attract foreign investment, and position Nigeria’s capital market for sustained growth.
