Categories: BusinessNews

SEC to introduce T+2 settlement cycle in Nigerian capital market from November 28

The Securities and Exchange Commission (SEC) has announced that the Nigerian capital market will transition to a T+2 settlement cycle for equities transactions starting Friday, November 28, 2025, replacing the current T+3 system.

The move is aimed at aligning the market with global best practices and improving efficiency.

In a statement on Thursday, the SEC said the transition follows months of preparation and stakeholder testing.

The new system is expected to provide investors with faster access to funds, boost market liquidity, and reduce counterparty risk, creating a more stable and resilient market environment.

The Central Securities Clearing System (CSCS) Plc, acting as the central counterparty, has invested significant resources to ensure seamless operational and technical readiness for the change.

Extensive testing with market participants reportedly showed no issues, reflecting confidence in the market’s preparedness.

Under the T+2 system, trades executed on November 28 will settle on December 2, 2025.

Transactions before this date, including those on November 27, will also settle on December 2, marking the first batch of T+2 settlements.

The SEC reaffirmed its commitment to fostering a modern, efficient, and transparent capital market and said it will continue engaging stakeholders to strengthen Nigeria’s investment environment.

LUKMAN ABDULMALIK

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