Nigeria’s capital market settles equities and commodities trades on a T+1 basis: one business day after the trade date. The Securities and Exchange Commission (SEC) moved the market from T+2 to T+1 on 1 June 2026, and in August set a 5:00pm settlement deadline and confirmed that foreign portfolio investors do not have to prefund trades.
The short answer
- What T+1 means: a trade executed on day T settles, with securities and cash exchanged, on the next business day.
- Effective date: Monday 1 June 2026, under an SEC circular signed on 14 May and published on 15 May 2026.
- Scope: equities and commodities transactions cleared and settled through the Central Securities Clearing System (CSCS).
- Deadline: 5:00pm on T+1, under an SEC clarification issued on 12 August 2026.
- Foreign portfolio investors: not required to prefund. Brokers acting for them must have controls to ensure funding within the timeline.
- Next: the SEC has said it has begun planning for T+0.
How Nigeria got here
Nigeria shortened its cycle twice in seven months. The SEC moved the market from T+3 to T+2 on 28 November 2025, then announced the move to T+1 in May 2026. The final T+2 trading day was Friday 29 May 2026. Trades executed on that day and on Monday 1 June both settled on Tuesday 2 June 2026, which compressed two trading days into a single settlement date during the transition.
The May circular required capital market operators, exchanges, clearing and settlement infrastructure providers, custodians, registrars and issuers to align their systems, processes, controls and workflows before implementation. It did not set separate cut-off times. Those came later.
The August clarification
On 12 August 2026 the SEC issued a clarification updating its earlier T+2 and T+1 circulars. The key points, as reported by TheCable:
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- Settlement time. “Settlement time for equities and commodities settled at CSCS is 5:00 p.m. T + 1.”
- Delivery versus payment. Securities are deemed fully paid at the time of settlement, preserving delivery-versus-payment settlement.
- Broker shortfalls. Where a broker-dealer’s trading account lacks funds to meet a settlement obligation, the shortfall is handled under the CSCS Default Management Procedure and the relevant exchange’s settlement guidelines.
- No prefunding for FPIs. Foreign portfolio investors are not required to prefund their accounts, but operators executing trades for them must maintain controls to ensure timely funding and settlement.
What it means in practice
For foreign investors and global custodians
The absence of a prefunding requirement removes a material friction for international investors. The pressure moves to the funding chain instead: foreign exchange conversion, cross-border payment cut-offs and time-zone differences must now fit inside a single business day. Custodians and brokers will need standing arrangements for late funding, and investors should confirm with their brokers how a shortfall will be treated under the default management procedure.
For brokers and operators
A one-day cycle shortens the window for trade matching, allocation and confirmation, and exposes operators directly to settlement default where clients fund late. Credit controls on client trading, intraday reconciliation and clear escalation paths for failed trades become operational necessities.
For issuers and deal counsel
Shorter settlement reduces counterparty exposure and makes the market more comparable with major international venues, which matters for cross-border listings and depositary receipt structures. It does not change offer timetables, which run on separate rules. See our coverage of the Dangote refinery IPO and Kenya’s approval of depositary receipt access to the offer.
What comes next: T+0
SEC Director-General Emomotimi Agama has said the Commission has begun planning for T+0, or same-day settlement. No timetable has been announced. A move to same-day settlement would require real-time funding and is likely to raise harder questions about foreign exchange and prefunding than T+1 did.
Market participants are also preparing for other SEC initiatives under the Investments and Securities Act 2025, including IFRS S1 and S2 implementation plans due on 15 October 2026.
Frequently asked questions
What is the settlement cycle in Nigeria?
T+1 for equities and commodities settled through CSCS, effective from 1 June 2026.
What time do trades settle under T+1?
By 5:00pm on the business day after the trade date, under the SEC’s clarification of 12 August 2026.
Do foreign investors have to prefund trades on the Nigerian Exchange?
No. The SEC has said foreign portfolio investors are not required to prefund, but their brokers must ensure timely funding and settlement.
Does T+1 apply to bonds?
The SEC’s May 2026 circular refers to equities and commodities transactions cleared and settled by CSCS. It does not address fixed income, so investors should confirm the applicable cycle for the relevant venue and instrument.
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