Nigeria’s Transition to T+1 Settlement Cycle

Faster, Safer, and More Efficient Capital Markets – Effective 29 May 2026

What is T+1?

The trade settlement cycle refers to the time between when a trade is executed in the market and when the buyer receives the securities while the seller receives the cash.

Under the T+1 settlement cycle, settlement occurs one business day after the trade date (T). I.e., the buyer and seller receive securities and cash respectively, one (1) day after trade is executed.

What is T+1?

The trade settlement cycle refers to the time between when a trade is executed in the market and when the buyer receives the securities while the seller receives the cash.

Under the T+1 settlement cycle, settlement occurs one business day after the trade date (T). I.e., the buyer and seller receive securities and cash respectively, one (1) day after trade is executed.

How T+1 Works in Simple Terms:

1. T (Trade Date)

An investor buys or sells a security through a broker on a designated capital trade point.
Orders are matched and trade data flow real-time to the CSCS for settlement.

2. T+1 (Settlement Date)

Cash moves from the buyer’s bank account to the seller’s bank account.
Securities move from the seller’s CSCS account to the buyer’s CSCS account.
The transaction is completed.

Why is Nigeria adopting it?

The T+1 settlement cycle means trades are finalized one business day after execution, enabling quicker delivery of securities, faster payments, and a more efficient, lower‑risk financial market system.

Key Benefits for Investors

Faster access to funds and securities: Investors don’t have to wait multiple days to receive the shares they bought or the money from the shares they sold.
Reduced counterparty risk: A shorter cycle reduces the chance of one party failing to fulfil their obligation.
Improved market efficiency: Capital circulates more quickly, supporting more liquidity and trading activity.