Move aims to boost liquidity, reduce risks, and align Nigeria with global market standards….
The Securities and Exchange Commission (SEC) has confirmed that the Nigerian capital market will officially transition to a T+2 settlement cycle for equities transactions beginning Friday, November 28, 2025.
The change, which shortens the current T+3 (trade date plus three days) settlement system by one day, is part of the Commission’s efforts to enhance market efficiency, improve liquidity, and align the Nigerian market with global best practices.
In a statement issued on Thursday, the SEC said the transition has reached its implementation phase after months of stakeholder consultations, system testing, and operational readiness checks.
“The migration is expected to significantly strengthen the Nigerian capital market by giving investors quicker access to funds, improving overall liquidity, and reducing counterparty risk exposure,” the Commission stated.
“This initiative will foster a more stable, resilient, and competitive market environment.”
CSCS Ensures Seamless Transition
The SEC noted that the Central Securities Clearing System (CSCS) Plc, as the central counterparty for settlement, has played a crucial role in ensuring a smooth migration process.
According to the statement, extensive testing with market participants has been carried out successfully with no reported issues, underscoring confidence in the market’s preparedness for the switch.
Under the new system, all trades executed on Friday, November 28, 2025, will settle on Tuesday, December 2, 2025. Transactions executed before that date will still follow the existing T+3 cycle. For example, trades completed on Thursday, November 27, will also settle on December 2, coinciding with the first batch of T+2 settlements.
Enhancing Investor Confidence and Market Stability
The Commission reaffirmed its commitment to building a modern, transparent, and efficient capital market, emphasizing that the T+2 migration represents a key milestone in Nigeria’s market reform agenda.
It added that the SEC will continue to work closely with capital market operators and stakeholders to sustain progress and strengthen Nigeria’s position as a leading investment destination in Africa.
About the Author
