Nigeria Moves to T+2 Settlement Cycle
Nigeria has formally shifted from a T+3 to a T+2 settlement cycle, marking a significant advance in the ongoing modernisation of its capital market.
The T+2 settlement means securities and funds from trades will now be settled two business days after they are executed.
Mr Temi Popoola, Chairman, Central Securities Clearing System (CSCS) said during a media briefing on Friday that the change represented a strategic and timely step toward global best practice.
He described the transition as a historic milestone that would deepen liquidity, reduce settlement risk and strengthen confidence among domestic and international investors.
Popoola said the reform demonstrated Nigeria’s commitment to building a market driven by efficiency, transparency and strong competitiveness in a rapidly evolving global landscape.
He noted that the new settlement cycle created a firmer platform for foreign investor participation and aligned with the national ambition of achieving a $1 trillion economy.
According to him, the shift positioned Nigeria to follow emerging global reforms, including moves by advanced markets towards adopting T+1 settlement cycles
“The transition to T+2 settlement is not just operational. It is a clear strategic signal,” Popoola said. He said the move positioned the market to engage effectively with future innovation and support the next era of capital market development.
Popoola added that shortening settlement time strengthened the industry’s underlying structure and sent a message of readiness to global financial partners.
He said the achievement was the outcome of several months of coordinated work involving regulators, operators, intermediaries and technology partners across the value chain.
He commended the Securities and Exchange Commission for providing leadership and guiding the market through a complex and delicate transition period.
Popoola also praised the T+2 Steering Committee for resolving key technical and regulatory conditions required to safeguard trust and market integrity.
CSCS Managing Director, Alhaji Haruna Jalo-Waziri, said the transition followed extensive stakeholder engagement, rigorous testing and capacity-building programmes for market participants.
He said the new system was supported by major technology upgrades, including a seamless migration to IBM Power 10 systems to enhance processing capacity.
Jalo-Waziri recalled that the market once depended on manual processes and physical certificates, which slowed settlement and increased counter-party exposure.
He said post-trade operations were now 95 per cent automated, enabling faster settlement, lower risk and improved reliability across all trading activities.
He commended the CSCS board and risk-management teams for approving critical investments and ensuring compliance with global settlement and post-trade standards.
“The new settlement system offers greater speed, stronger automation and improved market connectivity,” Jalo-Waziri said.
He added that investors, brokers and custodians would now benefit from quicker settlement, reduced counter-party risk and a more predictable trading environment.
SEC Executive Commissioner, Operations, Mr Bola Ajomale, commended Jalo-Waziri for his vision and determination in ensuring successful delivery of the transition.
He said the development would challenge regulators to sharpen surveillance tools and enhance the capacity to identify error patterns more promptly.
Ajomale described the move as timely, especially as Nigeria works to demonstrate its attractiveness as a credible and safe investment destination.
He said the reform changed only the settlement timeline and did not alter the structure or order of capital market operations.
He added that the SEC dispute-resolution unit would receive additional staff and the monitoring unit would enjoy stronger operational support
