CSCS, Other Market Operators Set for T+1 Settlement Transition
Operators in the Nigerian capital market have assured investors and stakeholders of their readiness for the transition to the T+1 settlement cycle scheduled to commence on Monday, June 1.
The operators gave the assurance during a virtual discourse on “Driving Market Readiness: Trade Associations and the Transition to T+1 Settlement Cycle”, held on Friday and organised by the Central Securities Clearing System Plc(CSCS).
T+1 settlement cycle means stock market transactions will be completed one business day after execution, replacing the current T+2 system.
The Director-General of CSCS, Mr Shehu Shantali, said the transition marked a major milestone in the modernisation of the capital market infrastructure, aimed at improving efficiency and reducing systemic risks.
He said the reform would align Nigeria with global standards and strengthen investor confidence.
“The transition to T+1 is not merely a change in settlement timelines,” he said.
“It is a strategic initiative aimed at positioning Nigeria’s market infrastructure in line with evolving global standards while enhancing efficiency, reducing systemic risk and strengthening investor confidence.”
Shantali said CSCS had upgraded its infrastructure and digital systems, including API-driven integrations and enhanced straight-through processing, to support seamless implementation.
He also noted improved integration with global financial messaging systems such as SWIFT to enhance interoperability with international investors.
He urged brokers to ensure timely issuance and transmission of contract notes, describing it as critical under the compressed settlement timeline.
Chairman of the Association of Securities Dealing Houses of Nigeria (ASHON), Mr Sehinde Adenagbe, said operators were substantially prepared for the migration, noting that the market already functions largely on a pre-funded basis.
He expressed confidence that technology upgrades and stakeholder coordination would ensure smooth implementation.
“We do not anticipate any significant trade failure or system downturns,” he said.
Also, President, Association of Asset Custodians of Nigeria, Mr Babatunde Majiyagbe, said custodians had upgraded systems and processes to align with the shorter settlement cycle and support market efficiency.
He said custodians remained committed to supporting regulators, investors and infrastructure providers during the transition.
Earlier, Mrs Onome Komolafe, Divisional Head, Business Services and Client Experience, CSCS, led discussions on technical readiness, gap analysis and structural adjustments required for the transition.
Komolafe, also the Chairperson of T+1 implementation committee, CSCS, had engaged operators on the rationale for moving from T+2 to T+1 and the expected improvements in market efficiency and infrastructure performance. Nigeria’s Inflation Rate for April Climbs to 15.69%
