Nigeria’s Capital Market Moves to T+2 Settlement Cycle from November 28 to Boost Liquidity and Efficiency

The Securities and Exchange Commission (SEC) has announced that Nigeria’s capital market will transition to a T+2 (trade date plus two days) settlement cycle for equities, effective Friday, November 28, 2025. The move is aimed at aligning the Nigerian market with global best practices, improving liquidity, and reducing counterparty risk.

Previously, equities transactions were settled on a T+3 cycle, meaning trades took three business days to finalize. The new T+2 system will allow investors to access funds faster, enhancing market efficiency and fostering a more resilient trading environment.

SEC noted that extensive preparations and testing had been conducted with market participants to ensure a seamless transition. CSCS Plc, the central securities clearinghouse, has dedicated significant resources to operational and technical readiness, with no issues reported during the trial phase.

Under the new system, trades executed on Friday, November 28, will be settled on Tuesday, December 2. Transactions executed prior to the transition date will still follow the T+3 schedule, meaning trades carried out on Thursday, November 27, will also settle on December 2, coinciding with the first batch of T+2 settlements.

The SEC believes that the transition will improve market liquidity, reduce counterparty exposure, and position Nigeria’s capital market alongside international standards, making it more attractive to both local and foreign investors.