Some investors in the Nigerian stock market have expressed readiness for the transition to the T+1 settlement cycle, commencing on May 29.

Nigeria targets May 29 to transition to a T+1 settlement cycle from the T+2 cycle currently in operation. 

The T+1 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 cycle, settlement occurs one business day after the trade date; the buyer and seller receive securities and cash, respectively, one day after the trade is executed.

T+2, on the other hand, is the settlement cycle where the completion of a securities trade, including the transfer of ownership and payment, occurs two business days after the trade is executed.

Some of the investors and shareholders who spoke in Abuja on Monday said the transition would ensure a faster, safer and more efficient capital market.

Bisi Bakare, the National Coordinator of Pragmatic Shareholders’ Association, said the market was largely prepared for the transition, though with some adjustment phases expected.

Mr Bakare said that preparation for the transition was evident in the gradual technology upgrade by market operators.

She said that smaller brokers and retail participants may need time to fully adjust to the trade system.

“The T+2 cycle has already delivered improved liquidity and faster reinvestment of funds. Other benefits of T+2 are reduced counterparty risk, greater market efficiency and transparency, and alignment with global best practices.

“These benefits set the foundation for a smoother transition to T+1, which will further enhance market speed and competitiveness,” she said.

Ridhwan Hamza, Secretary General, Liberated Shareholders’ Association, said that markets in Western countries had adopted same-day settlement.

He said the T+1 settlement cycle would help investors access their funds in good time.

”Honestly, I do not know why it took us this long to be talking about T+1 in 2026, when markets, especially in the West, have adopted same-day settlement.

”The most important benefit is that it gives you access to your funds in good time, thereby affording you the opportunity to further invest such on other ventures or vehicles,” he said.

Moses Igbrude, the National Coordinator of the Independent Shareholders Association of Nigeria, said the settlement cycle was a policy aimed at satisfying and delivering shareholders’ values.

Mr Igbrude said the value was to ensure a timely and effective market. 

(NAN)