The Securities and Exchange Commission (SEC) has announced that Nigeria’s capital market will officially transition to a T+2 (trade date plus two days) settlement cycle for equities transactions beginning Friday, November 28, 2025. The Commission said the move is aimed at aligning with global best practices, boosting market efficiency, and improving investor experience.
Before now, the Nigerian market operated a T+3 (trade date plus three days) settlement cycle. In a statement issued yesterday, the SEC noted that the transition has reached the implementation stage after months of rigorous preparation, system upgrades, and stakeholder testing.
According to the Commission, the migration to a shorter settlement period will “significantly enhance the Nigerian Capital Market by allowing investors quicker access to funds, thereby enhancing overall market liquidity and reducing counterparty risk exposure, fostering a more stable and resilient market environment.”
The SEC also disclosed that the Central Securities Clearing System (CSCS) Plc has played a pivotal role in preparing for the new settlement regime. It noted that as the central counterparty, CSCS invested substantial resources to ensure both operational and technical readiness.
“Extensive testing with market participants has been successfully conducted without any reported issues, reflecting high confidence in the market’s preparedness for this landmark change,” the Commission added.
The adoption of a T+2 settlement standard places Nigeria alongside major global markets, including the United States and parts of Europe, which have long implemented shorter settlement cycles to improve efficiency and reduce systemic risks.
