Nigerian stock market’s transition to a two-day settlement cycle got off to a
mixed performance as appreciable increase in volume of trading was marked by
considerable decline in values.
The first-week data presented by the Nigerian Exchange (NGX) showed that
turnover rose across various assets classes including ordinary equities, exchange
traded funds and bonds.
However, all key value-based indices closed the immediate transitional period
lower, with nearly three out of four price changes on the negative side.
Nigeria had on June 1, 2026 made history as the first African country to shorten
transaction settlement cycle at its stock market to two days, a milestone that was
expected to enhance liquidity and global competitiveness of the Nigerian
market.
At a transition ceremony last recently at the NGX, Nigerian stock market
moved from a T+2 or three days to a T+1 or two days transaction settlement
cycle. The market had earlier moved from T+3 or four days transaction
settlement cycle.
With the transition, investors who sell or buy shares and other securities will
have their proceeds or securities delivered within two days, a day after the
transaction day. T+1 simply means transaction day and a day.
Trading data at the NGX indicated that total turnover last week rose to 3.966
billion shares worth N175.659 billion in 343,587 deals, as against a total of
2.398 billion shares valued at N111.480 billion traded in 241,313 deals two
weeks ago.
At the Exchange Traded Products (ETP) segment of the market, total turnover
rose to 5.266 million units valued at N735.024 million in 7,665 deals compared
with a total of 4.693 million units valued at N569.770 million traded in 5,505
deals penultimate week.
On the bond market, total transaction stood at 49.518 million units valued at
N52.908 billion in 29 deals as against 135,590 units valued at N157.012 million
recorded in 26 deals two weeks ago.
Total market capitalisation of quoted equities however dropped by N4.91
trillion during the five-day trading week, with 65 losers to 23 gainers. There
were 34 gainers and 51 losers in the previous week.
The All Share Index (ASI)- the value-based common index that tracks all share
prices at the NGX, depreciated by 3.11 per cent from the week’s opening index
of 250,385.47 points to close weekend at 242,593.31 points.
Aggregate market value of all quoted equities declined to N155.594 trillion at
the weekend as against the week’s opening value of N160.509 trillion.
The bearish start depressed Nigeria’s year-to-date return from 60.90 per cent to
55.90 per cent.
Stakeholders were optimistic that the transition would impact positively on the
Nigerian market performance.
Director-General, Securities and Exchange Commission (SEC), Dr. Emomotimi
Agama, said the transition was a defining moment in Nigerian market’s
evolution.
According to him, in just six months, Nigeria has successfully progressed from
T+2 to T+1 settlement, joining a growing group of markets embracing faster
and more efficient settlement cycles.
He said the achievement signalled that Nigeria is prepared to undertake the
structural reforms required to compete for global capital.