By Abubakar Yunusa
The Central Securities Clearing System (CSCS) says the capital market will transition to a T+1 settlement cycle from May 29 as part of efforts to improve market efficiency and align with global standards.
T+1 settlement is a financial market process where transactions are completed one business day after the trade date.
The new framework replaces the current two-day (T+2) settlement cycle.
T+2 settlement was launched on November 28, following approval by the Securities and Exchange Commission (SEC).
In a notice, CSCS said the move represents the next phase in the evolution of the country’s capital market infrastructure.
The clearing house said the transition is expected to enhance post-trade efficiency, reduce settlement risk, and accelerate the movement of securities and funds across the market.
CSCS added that all trades executed from Friday, May 29, will be settled on a T+1 basis.
It also clarified that trades carried out on Thursday, May 28, the final trading day under the T+2 cycle, and those executed on Friday, May 29, the first trading day under T+1, will both be settled on Monday, June 1.
The agency said the transition would require coordinated readiness among market participants, including exchanges, brokers, custodians, registrars, settlement banks, and institutional investors.
