SEC Sets November Deadline For T+2 Settlement Cycle Compliance By Operators

The Securities and Exchange Commission (SEC) of Nigeria has announced a firm deadline of November 28, 2025, for all market participants—including brokers, dealers, broker/dealers, and custodians—to upgrade their systems and processes. This move is aimed at ensuring the smooth adoption of the new T+2 settlement cycle in the equities market segment.

In a circular on the commission’s website dated June, 3, 2025 and titled ‘Implementation Of A New Settlement Cycle For Equities Transactions In The Nigerian Capital Market’ SEC noted that the equities segment of the market would transition to a T+2 settlement cycle, adding that this decision is further to a comprehensive review of the current settlement cycle in the Nigerian capital market and extensive engagements with stakeholders.

Following a thorough review of the existing settlement framework and extensive consultations with industry stakeholders, the SEC confirmed that the transition to a T+2 settlement cycle will officially commence on November 28, 2025.

This means that all equity transactions executed on that date will be settled within two business days after the trade date.

The SEC emphasised that all market operators must be fully prepared to implement the new settlement timeline effectively. Investors are encouraged to engage with their brokers and financial advisors to understand how this change might affect their trading activities and investment plans.

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“The T+2 settlement cycle for equities transactions would take effect on November 28, 2025. This connotes that transactions for November 28, 2025 would be settled via a T+2 cycle,” SEC said in a June 3 notice.

“All market participants, including brokers, dealers, broker/dealers and custodians, are required to update their systems and processes to ensure the effective implementation of the new settlement cycle.

“Investors are advised to consult with their brokers and investment advisers to understand how the new settlement cycle may impact their transactions and investment strategies,” SEC said.

“The Commission expects this migration to have a significant impact on the profile of the Nigerian Capital market by enabling: Improved Liquidity: An expedited settlement process, which allows investors to access their funds more quickly and enhance overall market liquidity.

The Commission highlighted several expected benefits of adopting the T+2 cycle, including:

Enhanced Liquidity: Faster settlement allows investors quicker access to funds, thereby boosting overall market liquidity.

Risk Reduction: Shortening the settlement period lowers counterparty risk, contributing to a more stable and secure market environment.

Global Competitiveness: Aligning Nigeria’s settlement practices with international standards positions the country as a more attractive destination for both local and foreign investors.

For clarity, the SEC said the T+2 settlement cycle means that when a trade is executed, the transfer of securities from the seller to the buyer and the corresponding payment must be completed within two business days following the trade date.