SEC Adopts T+2 Settlement Cycle to Boost Liquidity
By Patience Ikpeme
The Nigerian capital market is set to transition to a T+2 settlement cycle for equities transactions, effective Friday, November 28, 2025.
The move, announced by the Securities and Exchange Commission (SEC), aims to align the nation’s market infrastructure with international standards and significantly boost operational efficiency.
The SEC, in a statement released on Thursday, confirmed that the implementation phase of the T+2 (trade date plus two days) settlement cycle is now underway, following extensive preparatory work and successful testing involving various market stakeholders. This replaces the existing T+3 schedule.
The Commission’s Head of External Relations, Efe Ebelo, confirmed the readiness and anticipated benefits of the change. The shift is expected to deliver tangible improvements for market participants.
Mrs. Ebelo stated that the “migration is expected to significantly enhance the Nigerian Capital Market by allowing investors quicker access to funds, thereby enhancing overall market liquidity and reducing counterparty risk exposure, thereby fostering a more stable and resilient market environment.”
Under the new timetable, any trades executed on or after Friday, November 28, 2025, will settle two business days later. For instance, transactions carried out on that Friday will officially settle on Tuesday, December 2, 2025.
Transactions executed before the cut-off date will remain under the T+3 rule. Notably, trades from Thursday, November 27, will also settle on Tuesday, December 2, coinciding with the inaugural batch of T+2 settlements.
The Nigerian capital market’s central counterparty, the Central Securities Clearing System Plc (CSCS), has played a vital role in ensuring a smooth transition. The SEC acknowledged the institution’s efforts, noting its comprehensive preparation.
The Commission added that: “As the central counterparty, CSCS Plc has dedicated considerable effort and resources to ensure seamless operational and technical readiness throughout the transition.”
The market’s confidence in the landmark change appears high, as the SEC confirmed the thoroughness of the pre-launch phase. “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 disclosed.
The SEC assured of its commitment to developing a modern, efficient, and transparent capital market. The regulatory body maintained that it will continue to engage with stakeholders to drive further improvements and strengthen Nigeria’s position as a preferred investment destination.
