The Securities and Exchange Commission and the Central Securities Clearing System have said that Nigeria’s transition to a T+2 settlement cycle will significantly boost investor confidence and deepen market liquidity, marking a major step in aligning the nation’s capital market with global best practices.

This was disclosed at the webinar titled ‘Advancing Market Efficiency through T+2 Settlement’ on Wednesday.

The T+2 Settlement initiative, driven by the SEC’s directive, marks Nigeria’s transition from a T+3 (trade date plus three days) to a T+2 (trade date plus two days) settlement cycle.

The Securities and Exchange Commission had earlier announced the transition of the equities market settlement cycle from T+3 to T+2, effective November 28, 2025.

Speaking at the webinar, the Director-General of SEC, Dr. Emomotimi Agama, who was represented by the Executive Director (Operations), Bola Ajomale, said, “We’ve been on a 10-year journey with the master plan.

This is one of the crowning opportunities that we saw 10 years ago when we said we’re going to change the market, and we’re now getting to the end of it, and as we close out the revised master plan, this is one of the objectives that we want to hit, and we want to hit it running.

“Closure date for this is November 28. So, it’s not a maybe; it’s already like fixed into our calendars, and we know that we can get it done. It’s taken quite a lot of thought, a lot of consultation, a lot of planning, and a lot of testing to get us to this stage. A lot of scenarios have been examined. A lot of other jurisdictions have been reviewed to get to this stage.

We didn’t just sit down and think it would be good. We were actually at one point looking at T+0, then T+1. What we think is the least disruptive and the most practical way of doing this is to start with a move to T+2 from T+3.”

Ajomale added that this move puts Nigeria ahead of quite a few other capital markets and developed economies.

“So, we’re actually moving ahead very quickly, and we’re reforming not only the capital market but the economy as a whole. It has some very clear advantages; it reduces counterparty risk. It allows for quicker access to liquidity. It allows our capital to work harder and faster.

“It aligns with global markets, and I think in general, investors will sleep better at night if they know that there are 24 hours of their normal wait time. So, we’ve signed up for this transition. We are happy to see the market working towards it as well.

“I would encourage brokers, dealers, custodians, registrars, issuing houses, and all the players in the market: please do your internal checks, stress test your systems, and tie up your loose ends. Also, become advocates with your clients, be they retail, corporate, international or local. Sensitise them already that this move is coming,” Ajomale added.

The Managing Director/Chief Executive Officer, CSCS, Haruna Jalo-Waziri, who was represented by the Executive Director, Adeyinka Shonekan, provided a closer look at the industry engagements that led to the development.

“This journey to shorten the settlement cycle started with CSCS and other participants with the mandate to enhance liquidity and efficiency in the Nigerian capital market. We all recognise the importance of global competitiveness, and so the SEC was engaged and has led the formation of a market-wide committee that has led to this transition to T+2 and eventually T+1.

“The committee comprised many key stakeholders across the market ecosystem, and they were tasked with benchmarking global best practices around the world, evaluating risk and stakeholder impacts and recommending an optimal path for our markets to achieve the reduction in the settlement cycle.

“Their work started with a comprehensive report which recommended a shift from T+3, where we are now, to T+2 and eventually to T+1. The SEC eventually approved this transition and has mandated that we should move to T+2 by November 2025 and in April 2026, and this has marked a step forward for all of us in the market,” he said.

Adeyinka echoed similar sentiments on the benefits of the transition to the capital market and the economy.

The CEO of Nigerian Exchange Limited, Jude Chiemeka, emphasised that the NGX was fully prepared for the shift to T+2 settlement. This includes having the necessary systems, platforms, and product offerings in place.

He said, “As a multi-asset exchange, our exchange market cap transcends the equities market cap. Currently at N140.3tn, and comprises the equities market, the fixed income market, and the ETF market. It’s important to point out that aspect of our infrastructure because we currently trade our fixed income on a T+2 settlement cycle.

“So, moving to a T+2 settlement cycle for our equities is pretty much in line with the infrastructure that the exchange has in place. The transition cycle obviously starts from the operational part of our trading. We have market intermediaries, the trading licence holders, who typically do all these transactions and will obviously be engaging along those lines to ensure that they are also well-equipped to navigate this transition.

“What is important here is really the transitioning from a T+3 to a T+2, which is something that has already been embedded in the capital market plan as we aim to internationalise our exchange and also the capital market in line with global best practices.”

The MD/CEO of Lagos Commodities and Futures Exchange, Akinsola Akeredolu-Ale, described the commodities exchange as a greenfield that is being built.

“When you’re trading commodities in any country, you have to be in alignment with the global positioning, particularly, for example, for gold, petroleum, and liquids.

“If the transaction cycle for other countries that are trading with them is in real time, T+2, or T+1, then it’s also better for us to be aligned in our own position towards that. So, we thank the regulator; we’re moving towards T+2, then T+1 very quickly.”