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The Securities and Exchange Commission (SEC) and the Central Securities Clearing System (CSCS) have reaffirmed that Nigeria’s transition to a T+2 settlement cycle will significantly enhance investor confidence, deepen liquidity, and position the nation’s capital market more competitively on the global stage.
The announcement was made during a webinar themed “Advancing Market Efficiency through T+2 Settlement” held on Wednesday.
The move, which takes effect from November 28, 2025, will shorten the settlement cycle for equities transactions from the current T+3 (trade date plus three days) to T+2 (trade date plus two days).
Dr. Emomotimi Agama, Director-General of the SEC, represented by Executive Director (Operations) Bola Ajomale, described the transition as a milestone achievement in the Commission’s 10-year capital market master plan.
“This has taken years of planning, consultation, testing, and benchmarking against other jurisdictions. While we reviewed models like T+0 and T+1, T+2 emerged as the most practical and least disruptive step forward. It reduces counterparty risk, accelerates liquidity, and better aligns our market with international standards,” Ajomale explained.
He urged brokers, dealers, custodians, registrars, and other intermediaries to conduct system stress tests, sensitise clients, and ensure readiness ahead of the November deadline.
Haruna Jalo-Waziri, Managing Director/CEO of CSCS, represented by Executive Director Adeyinka Shonekan, noted that the transition was the outcome of broad industry engagement and global benchmarking.
“A market-wide committee of stakeholders evaluated risks and best practices before recommending a phased transition from T+3 to T+2, and eventually to T+1. The SEC’s approval of this roadmap marks a pivotal step for efficiency, liquidity, and competitiveness in the Nigerian capital market,” he said.
Market operators also expressed readiness for the transition. Jude Chiemeka, CEO of Nigerian Exchange Limited (NGX), highlighted that the exchange already operates its fixed-income segment on T+2, making the equities transition seamless.
“Our infrastructure, product offerings, and platforms are prepared to support this shift, which is in line with our ambition to internationalise Nigeria’s capital market,” he added.
Similarly, Akinsola Akeredolu-Ale, CEO of the Lagos Commodities and Futures Exchange, stressed the importance of aligning with global practices in commodities trading.
“For assets like gold and petroleum, where global markets operate on real-time, T+2 or T+1 cycles, it is critical that Nigeria aligns. The move towards T+2—and eventually T+1—positions our commodities market for global competitiveness,” he said.
With the shift to T+2, Nigeria joins a growing list of emerging and advanced markets modernising their settlement frameworks, underscoring the country’s commitment to reform and market efficiency.
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