NGX T+1 Settlement Cycle Makes Nigeria Africa’s Capital Market Leader

NGX T+1 Settlement Cycle Makes Nigeria Africa’s Capital Market Leader

Quick Reads

• Nigeria has become the first African country to transition to a T+1 securities settlement cycle, moving from the previous T+2 framework.
• Under T+1, securities transactions on the Nigerian Exchange (NGX) now settle one business day after trading, giving investors faster access to cash.
• SEC Director-General Dr. Emomotimi Agama said Nigeria now sits among markets representing approximately 60% of global market capitalisation using T+1.
• Nigeria made the earlier jump from T+3 to T+2 in November 2025, completing both transitions within just six months.
• The SEC has signalled further plans toward same-day (T+0) settlement as the next milestone.

The NGX T+1 settlement cycle is now live, placing Nigeria ahead of Africa in post-trade market infrastructure. Meanwhile, at a Lagos ceremony, Nigerian Exchange Limited adopted settlement one business day after trading. Consequently, cash from sales becomes available the next business day for investors.

The shift is significant regionally and globally. For example, the United States, Canada, Mexico, and India already use T+1 or faster settlement. Meanwhile, the European Union and the United Kingdom plan T+1 adoption for 2027. Therefore, Nigeria has moved ahead of many developed markets.

At the ceremony, SEC Director-General Dr. Emomotimi Agama spoke about the milestone. He said Nigeria now joins markets representing about 60% of global market capitalisation. Furthermore, he added that shorter settlement cycles are becoming the standard for competitive markets.

The reform pace has been striking. First, Nigeria moved from T+3 to T+2 settlement in November 2025. Subsequently, it completed the transition to T+1 within six months. Notably, the market achieved this without disrupting operations or weakening investor confidence.

NGX Group Chairman Umaru Kwairanga explained the change simply. For instance, if investors sell today, they receive payment tomorrow. As a result, this clarity benefits retail investors across Lagos, Kano, and Port Harcourt. Additionally, Temi Popoola, Group CEO of NGX Group, described T+1 as part of a broader journey. Specifically, that journey includes plans for private markets, fixed income, and digital assets.

According to ThisDay Live, the Central Securities Clearing System invested heavily in transition-enabling infrastructure. These investments included API integrations, cybersecurity upgrades, and digital self-service platforms. The reforms align with the broader Investments and Securities Act 2025. Crucially, the SEC has signalled plans to pursue T+0 settlement. It views T+0 as a near-term regulatory objective rather than a distant goal. Nigeria is not slowing down.