The Central Securities Clearing System (CSCS) has announced that Nigeria’s capital market will officially migrate to a T+2 settlement cycle on November 28, 2025, following formal approval from the Securities and Exchange Commission (SEC).
This means that transactions in equities and other securities will now be settled two business days after the trade date, a shift from the existing T+3 system currently in place.
Announcing the development in a statement on Wednesday, Haruna Jalo-Waziri, CEO of CSCS, described the transition as a major milestone for the Nigerian financial markets, bringing them closer to international best practices.
“The transition to T+2 is a major milestone for the Nigerian capital market and reflects the collaborative spirit of our ecosystem,” said Jalo-Waziri.
“This shift aligns our market with global best practices while strengthening efficiency, resilience, and investor trust. CSCS is proud to coordinate this journey with the support of regulators, exchanges, and stakeholders.”
What is T+2 Settlement?
The T+2 system short for “Trade date plus two days” refers to the time between the execution of a transaction and its final settlement. Under this model, the buyer receives the securities and the seller receives the payment within two business days.
This faster settlement is expected to:
- Enhance market liquidity
- Reduce counterparty and systemic risk
- Boost investor confidence, particularly among institutional players and foreign investors
Stakeholder Engagement Ahead of Transition
Jalo-Waziri explained that a Settlement Cycle Review Committee (SCRC), led by CSCS, conducted a comprehensive market assessment and developed a transition framework which was submitted to the SEC for approval.
To prepare market participants, the CSCS will host a webinar themed “Advancing Market Efficiency Through T+2 Settlement” on September 10. The virtual event will feature insights from the Director-General of the SEC as well as leaders of Nigeria’s major securities exchanges.
All stakeholders are encouraged to attend and can register via a dedicated link shared by CSCS.
