Stock Market Set For Faster Transactions As New Settlement Timeline Begins

Nigeria’s capital market is set to adopt a new settlement timeline, T+2, effective November 28, 2025, reducing the time for securities transactions to be completed from three days (T+3) to two business days after trade execution.

The move, approved by the Securities and Exchange Commission (SEC), aims to enhance market efficiency, reduce counterparty risk, and align Nigeria with global best practices, ensuring quicker access to funds and improved liquidity for investors.

T+2 is the new settlement timeline that ensures securities transactions, including payment and share transfer, are completed two business days after trade execution. This new cycle enhances efficiency, reduces risk and brings Nigeria closer to global best practice.

Shareholders or investors on the Nigerian capital market should be aware that the T+2 timeline shortens settlement by one day, resulting in earlier receipt of dividends and reduced counterparty risk.

Analysts at Afrinvest Limited stated that, “the Securities & Exchanges Commission (SEC) has reviewed and approved for Nigeria’s capital market to transition from the current T+3 (Trade Date plus three days) settlement cycle to a T+2 (Trade Date plus two days) settlement cycle, effective November 28th, 2025.

“This means that securities and funds from trades will be settled within two business days after a transaction is executed, rather than the current three business days.”

It noted that, “by reducing the time between trade execution and settlement, Nigeria’s market becomes more competitive, liquid, and resilient. This upgrade reflects the commitment of regulators, exchanges, and financial institutions to modernize Nigeria’s capital markets, improving investor confidence and reducing risks associated with delayed settlements.”

SEC stated that, “The migration is expected to significantly enhance the Nigerian Capital Market by allowing investors quicker access to funds, thereby enhancing overall market liquidity and reducing counterparty risk exposure, thereby fostering a more stable and resilient market environment.”

The commission added that, “As the central counterparty, CSCS Plc has dedicated considerable effort and resources to ensure seamless operational and technical readiness throughout the transition.

“Extensive testing with market participants has been successfully conducted without any reported issues, reflecting high confidence in the market’s preparedness for this landmark change. ”

Also, speaking at a stakeholder webinar themed: ‘Trade Associations: Ensuring Stakeholders’ Readiness for T+2 Settlement System’, the managing director/CEO, CSCS, Haruna Jalo-Waziri, noted that CSCS was established to address settlement risks and that adopting a T+2 cycle aligns Nigeria with international standards by reducing delays, minimising risk, and improving liquidity.

Jalo-Waziri thanked the Securities and Exchange Commission (SEC) for its support and openness to innovation, as well as the NGX Group Plc and various trade associations for their active collaboration throughout the implementation process.

The chairman of CSCS, Temi Popoola, highlighted the significant investment made in technology and infrastructure to ensure operational and technical readiness for the T+2 transition.

He stated that the organisation has conducted rigorous stress testing under high-volume and adverse conditions, demonstrating CSCS’s capability to support the new system with strong redundancy and fallback mechanisms.

He stressed the collective commitment of both regulators and market participants to deepen and modernize market infrastructure.

He also pointed out that a successful migration to T+2 requires cooperation across the entire market value chain, including banks, custodians, registrars, fund managers, and back-office operators to ensure systems are aligned, liquidity plans are in place, and counterparty processes are updated.