Nigeria has officially transitioned from a T+3 to a T+2 settlement cycle, a shift that signals a major step forward in the ongoing efforts to modernise the nation’s capital market. Under the new structure, trades will now be fully settled within two business days after execution.
Speaking during a media briefing on Friday, the Chairman of the Central Securities Clearing System (CSCS), Mr. Temi Popoola, described the transition as a timely, strategic move that aligns Nigeria with global best practices. He noted that shortening the settlement cycle would boost market liquidity, minimise settlement risks, and strengthen trust among both local and foreign investors.
Popoola emphasised that the upgrade reflects Nigeria’s commitment to building a more efficient, transparent and competitive market capable of keeping pace with continuous global reforms. He added that the new system enhances the country’s prospects for increased foreign investment and supports its broader economic ambition of achieving a $1 trillion GDP.
He further explained that the shift positions Nigeria to seamlessly adapt to future settlement developments, including the global trend toward T+1 cycles. According to him, the decision is more than an operational change; it is a strong strategic signal of readiness for the next phase of capital market evolution.
Popoola acknowledged that the achievement was the outcome of months of coordinated efforts by regulators, market operators, intermediaries and technology partners. He commended the Securities and Exchange Commission (SEC) for its leadership throughout the transition and praised the T+2 Steering Committee for resolving complex regulatory and technical issues necessary for safeguarding market integrity.
CSCS Managing Director, Alhaji Haruna Jalo-Waziri, noted that the transition followed extensive engagement with market stakeholders, robust testing and capacity-building exercises. He explained that significant technological upgrades—including a seamless migration to IBM Power 10 systems—now support the faster settlement process.
Jalo-Waziri recalled that the Nigerian capital market once relied heavily on manual procedures and physical certificates, practices that slowed settlement and heightened counter-party risk. Today, he said, post-trade operations are 95 per cent automated, enabling safer, faster and more reliable transactions.
He urged investors, brokers and custodians to take advantage of the improved system, which offers greater speed, enhanced automation and stronger market connectivity.
Also speaking, SEC Executive Commissioner of Operations, Mr. Bola Ajomale, commended Jalo-Waziri for his commitment to ensuring a smooth transition. He noted that the new settlement window will require regulators to intensify surveillance efforts and enhance error-detection capabilities.
Ajomale stressed that while the move alters the timeline for settlement, it does not change the structure or order of market operations. He added that SEC plans to strengthen its dispute-resolution unit and bolster the monitoring department to support the new system.