Eric Akinduro, a former chairman of the Ibadan Zone Shareholders Association, has said that adopting a T+1 settlement cycle in the Nigerian capital market would improve market efficiency and attract more investors.

Reacting to recent developments in the Nigerian stock market, Akinduro described them as a welcome development that would bring tremendous advantage to market operators and investors.

The association’s chairman disclosed 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 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.

Mr 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.

Mr 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 in implementing the system.

Mr 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 access to funds and for 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.

The Nigerian Capital Market will transition from the current T+2 Settlement Cycle to a T+1 Settlement Cycle, effective June 1, 2026.

(NAN)