SEC to Roll Out T+2 Settlement Cycle in Nigerian Capital Market Starting Nov. 28

The Securities and Exchange Commission (SEC) has confirmed that Nigeria’s capital market will officially migrate to a T+2 settlement cycle for equities trades beginning Friday, November 28, 2025.

Under the new framework, trades executed on Nov. 28 will settle by Tuesday, December 2, while transactions carried out before the switchover will still follow the existing T+3 model.

According to the SEC, moving to a two-day settlement timetable is expected to deepen market liquidity by granting investors faster access to funds and to lower counterparty risk, as the timeframe between trade execution and settlement narrows.

Moreover, the shift is in line with international best practices, bringing Nigeria’s equity market infrastructure closer to that of mature markets.

The Central Securities Clearing System (CSCS) Plc, which serves as the central counterparty, has affirmed its operational readiness for the transition. CSCS CEO **Haruna Jalo‑Waziri** emphasized that the organization has invested heavily in technical infrastructure, running extensive stress tests under a variety of scenarios to ensure a seamless changeover. Onome Komolafe, Divisional Head of Depository at CSCS, disclosed that **19 end‑to‑end test scenarios** were successfully completed, with no reported glitches — a clear sign of the system’s robustness.

In anticipation of the shift, SEC has engaged broadly with market operators, including brokers, custodians, fund managers, and back-office administrators, to ensure systems and processes are fully aligned. SEC’s notice also urges investors to consult with their brokers or financial advisors to understand how the new settlement cycle could affect their trading habits or liquidity planning.

Market analysts view the T+2 transition as a major infrastructure reform that will likely strengthen investor confidence and improve market dynamics, especially in the run-up to year-end. Dr. Emomotimi Agama, Director-General of SEC, said the move underscores the Commission’s commitment to building a modern, efficient, and globally competitive capital market in line with its long-term master plan Likewise, custodial and brokerage associations have expressed optimism, applauding SEC and CSCS for the coordinated efforts in ensuring a smooth transition.

As Nigeria prepares to implement the T+2 regime, all eyes will be on how the new cycle impacts trading behaviour, liquidity levels, and overall market resilience. The coming weeks will be critical in gauging both technical performance and investor response to this landmark reform.