Nigeria’s capital market to transition to T+2 settlement cycle by November

The Central Securities Clearing System (CSCS) Plc, Nigeria’s first clearing and settlement house, has received strong backing from capital market regulators and operators for its transition to a T+2 settlement cycle in Nigeria, scheduled to commence on 28 November 2025.

This move marks a significant milestone in advancing efficiency, risk mitigation, and global competitiveness within the Nigerian capital market. The market currently operates under a T+3 settlement cycle, which presents several challenges, including elevated counterparty risk, lower liquidity, operational inefficiencies, and exposure to market volatility. Transitioning to T+2 is expected to address these limitations and align the Nigerian capital market with international best practices.

At a stakeholder webinar hosted by CSCS on the theme “Advancing Market Efficiency through T+2 Settlement”, key regulators and operators reaffirmed their readiness for this transition.

Speaking at the event, Bola Ajomale, Executive Commissioner (Operations), Securities and Exchange Commission (SEC), emphasised the Commission’s commitment to modernising the Nigerian capital market.

“The Commission’s plan is to move to a T+1 cycle next year, in alignment with trends in developed markets, and ultimately target T+0. We urge all market participants to prepare for this shift and adequately engage their clients. This initiative is a critical component of our broader capital market reforms aimed at enhancing global competitiveness,” Ajomale stated.

Representing the Managing Director/CEO of CSCS, Adeyinka Shonekan, Executive Director, highlighted the extensive groundwork laid by CSCS to ensure a seamless transition. This includes the establishment of a stakeholder-driven committee to perform gap analysis and benchmark CSCS processes against global standards across key performance metrics.

Jude Chiemeka, Managing Director/CEO, Nigerian Exchange Limited (NGX), expressed the Exchange’s full readiness in terms of infrastructure and product offerings. He noted that NGX had undertaken market-wide simulation exercises, proactive communication strategies, and set up dedicated support systems to facilitate the changeover.

On his part, Akin Akeredolu-Ale, Managing Director/CEO, Lagos Commodities and Futures Exchange (LCFE), who compared settlement cycles in some global markets, stressed the efforts of LCFE on regulatory alignment, onboarding facilitation, and stakeholder education to leverage the opportunities presented by the T+2 framework.

Similarly, Chinwe Ekeh, Head of Operations & IT at NASD Plc, reiterated the organisation’s preparedness through system testing, capacity building, and a sound funding strategy to support the clearing of unlisted securities under the new regime.

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The Divisional Head, CSCS Depository, Onome Komolafe, noted that the clearing house had carried out a comprehensive infrastructure upgrade and a review of operational processes to ensure the transition, which will move the nation’s capital market into the league of advanced markets. She also briefed participants on the processes for implementing the new settlement system, technical gap analysis, risk management, compliance framework, and the timelines and milestones.

The adoption of the T+2 settlement cycle in Nigeria represents a significant stride towards modernising the country’s capital market infrastructure and creating a more efficient, transparent, and globally aligned financial ecosystem.

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