T+1 Settlement Cycle to Boost Nigeria’s Capital Market Efficiency, Says Expert
Former Ibadan Zone Shareholders Association Chairman says faster settlement will attract foreign investors and align Nigeria with global best practices
Mr. Eric Akinduro, a former Chairman of Ibadan Zone Shareholders Association, has said that the adoption of the T+1 settlement cycle in the Nigerian capital market would improve market efficiency and attract more investors.
Reacting to recent developments on the Nigerian Stock Market, Akinduro described them as a welcome one that would attract tremendous advantages to market operators and investors.
The Association’s chairman told the News Agency of Nigeria (NAN) in Ibadan on Monday that the latest transition to the T+1 settlement system aligns Nigeria with global best practices.
According to him, the market had previously operated on T+3 settlement before moving to T+2 and the latest transition to T+1.
“What this means is that transactions will now be processed and completed faster, while proceeds from share sales become available within the next trading day.
“This will bring more attractiveness to the market and make our market more efficient and globally competitive,” he said.
Akinduro noted that countries such as the United States, India, and Canada had already adopted the T+1 settlement system.
The development, he said, would enable investors to gain quicker access to their funds.
“If you sell your shares today, you will have access to your payment tomorrow. It gives quick value to your money and enables quick access to payment,” he said.
Akinduro also said that the system would attract more foreign investors to the Nigerian market.
According to him, international investors place a high premium on transparency and prompt payment.
He, however, identified some challenges associated with the implementation of the system.
Akinduro said stockbrokers, custodians, and banks would need to upgrade their systems and processes to meet the tighter settlement timeline.
He also stressed the need for immediate availability of funds and effective adaptation by market operators.
“In general, it is good for our market, but to make this effective, the level of compliance must always be monitored to ensure 100 per cent compliance,” the chairman said.
NAN reports that the Nigerian Capital Market will transition from the current T+2 Settlement Cycle to a T+1 Settlement Cycle, effective Monday, June 1, 2026.
Credit NAN: Texts Excluding Headlines.
