The Securities and Exchange Commission (Securities and Exchange Commission Nigeria) has announced that trades in equities and commodities will begin settling within one day starting June 1 in Nigeria.

The new settlement cycle is aimed at speeding up transactions in the capital market and improving efficiency for investors, brokers, and other market participants.

Under the updated system, financial trades that previously took longer settlement periods will now be completed within a shorter timeframe, allowing investors quicker access to their funds and securities.

The SEC said the move is part of broader reforms to modernise Nigeria’s capital market infrastructure and align it with global best practices in financial trading and settlement systems.

Market operators are expected to adjust their processes and technology systems ahead of the implementation date to ensure a smooth transition.

The regulator noted that faster settlement cycles can also help reduce risk in the financial system by limiting the time between trade execution and final payment.

Financial analysts say the change could boost investor confidence and improve liquidity in the market, especially as more retail and institutional investors participate in trading activities.

Further guidelines on implementation and compliance are expected to be released ahead of the June 1 rollout.