Nigeria’s capital market has officially transitioned from a T+3 to a T+2 settlement cycle, reducing the time between trade execution and settlement to two business days. The move, effective November 28, is aimed at improving market efficiency, lowering risks, and aligning the country with global post-trade standards, while laying the groundwork for a potential T+1 system next year.
Speaking at the official announcement, Bola Ajomale, Executive Commissioner of Operations at the Securities and Exchange Commission (SEC), said the transition represents a major step toward faster, more reliable, and globally competitive market operations. He noted that investors will benefit from quicker access to funds, reduced counterparty risk, and a more efficient trading experience, bringing Nigeria in line with advanced markets such as the US, Canada, and the European Union.
Haruna Jalo-Waziri, Managing Director/CEO of the Central Securities Clearing System (CSCS), explained that the shift followed years of meticulous planning, stakeholder engagement, and technology upgrades, including the adoption of IBM Power 10 systems. He emphasised that the reform strengthens market liquidity, reduces operational risk, and boosts investor confidence, all while keeping implementation costs minimal through phased investments over several years.
Temi Popoola, CSCS Chairman, described the transition as a landmark moment for Nigeria’s financial market infrastructure, signalling readiness to attract increased foreign investment and support more sophisticated capital market products. Officials said extensive testing and collaboration with brokers, custodians, settlement banks, and regulators ensured a smooth and seamless transition, while dispute-resolution mechanisms and command-control systems were set up to manage any operational issues.
According to Jalo-Waziri, markets undergoing similar transitions often experience a temporary dip in liquidity as participants adjust, but volumes typically rebound and rise above previous levels within months. He added that with improvements in payment systems, central bank collaboration, and ongoing technological upgrades, Nigeria could implement a T+1 settlement cycle as early as May 2026, further modernising the capital market and enhancing investor experience.
The transition is part of Nigeria’s broader financial sector reforms aimed at boosting transparency, efficiency, and competitiveness, while positioning the country as a leading investment hub in Africa. Regulators and market operators alike believe the T+2 cycle will strengthen market integrity, improve risk management, and signal to both local and international investors that Nigeria’s capital market is prepared to meet the demands of a rapidly evolving global financial landscape.
