Nigeria has become the first capital market in Africa to implement a T+1 settlement cycle, marking a major milestone in efforts to modernise trading systems, improve efficiency and strengthen investor confidence, officials said on Monday.
The transition means that securities transactions on the Nigerian capital market will now be settled one business day after trade execution, compared with the previous T+2 cycle.
The reform, which took about six months to implement, is designed to reduce counterparty risk, enhance post-trade efficiency and align Africa’s largest economy with global best practices increasingly adopted by major financial markets.
Speaking at a transition ceremony in Lagos, the Director-General of the Securities and Exchange Commission (SEC), Emomotimi Agama, described the move as a defining moment in the evolution of Nigeria’s financial markets.
“The era of T+1 has begun. In just six months, Nigeria has successfully progressed from T+2 to T+1 settlement, joining a growing group of markets embracing faster and more efficient settlement cycles,” Agama said.
He added that the reform demonstrated Nigeria’s readiness to undertake structural changes required to attract global capital and improve competitiveness in international financial markets.
Market analysts say shorter settlement cycles are increasingly being adopted worldwide as regulators seek to reduce systemic risk and improve liquidity in capital markets.
By accelerating the completion of trades, T+1 settlement reduces the time window during which market participants are exposed to potential default risk, while also improving cash flow efficiency for investors and institutions.
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The Nigerian Exchange Group said the reform reflects a broader effort to modernise market infrastructure and strengthen confidence among domestic and international investors.
Group Chairman of NGX Group, Umaru Kwairanga, said the transition underscores the commitment of stakeholders to deepening market institutions and enhancing Nigeria’s role in global capital flows.
“Milestones such as this reinforce confidence in our institutions and demonstrate our collective determination to build a more efficient and globally competitive capital market,” he said.
The Central Securities Clearing System (CSCS), which plays a key role in post-trade settlement operations, also described the transition as part of a long-term transformation agenda for the market.
CSCS Group Managing Director Temi Popoola said the move is a step toward building a deeper and more liquid capital market capable of supporting sustained economic growth.
“While today is a significant milestone, it is not the destination. It is part of a broader journey toward building a deeper, more liquid, efficient and globally competitive capital market,” he said.
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Nigeria’s capital market has undergone a series of reforms in recent years aimed at attracting foreign investment, increasing transparency and improving market infrastructure.
The adoption of the T+1 settlement cycle places Nigeria among a small group of markets globally moving toward faster settlement systems, a trend driven by technological advancement and increasing demand for real-time financial operations.
Analysts say the reform could enhance Nigeria’s attractiveness to global portfolio investors, particularly those seeking more efficient and lower-risk trading environments.
However, they also note that the success of the new system will depend on sustained infrastructure investment, market coordination and investor adaptation to the accelerated settlement timeline.
The move is widely seen as part of Nigeria’s broader strategy to position its capital market as a leading financial hub in Africa, capable of competing with more established emerging markets.
