In a landmark move aimed at enhancing the operational efficiency and global appeal of Nigeria’s capital market, the Securities and Exchange Commission (SEC) has confirmed the official implementation of a T+2 settlement cycle for equities, effective November 28, 2025.
This regulatory transition reduces the previous trade settlement period from three business days (T+3) to two (T+2), bringing Nigeria closer in alignment with international financial markets such as the United States, United Kingdom, Canada, and key Asian economies, where T+2—or even T+1—is standard practice.
For years, capital market stakeholders—including institutional investors, brokers, and regulators—have advocated for reforms to streamline post-trade processes. Now, with this change on the horizon, the Nigerian equity market is poised to gain a competitive edge in attracting both local and international investors.
Under the new structure, trades executed on any business day (T) will now be settled within two business days. This upgrade minimizes settlement risks, accelerates fund turnover, and bolsters market liquidity.
Transitioning to T+2 is more than a procedural update. It’s a strategic leap forward that underscores Nigeria’s commitment to financial innovation and investor protection. With global investment decisions increasingly influenced by speed, security, and efficiency, Nigeria’s outdated T+3 cycle had long posed a barrier to capital flow and market dynamism.
“This shift will allow investors quicker access to capital and enhance trading volumes, which is vital for a thriving securities market,” said an SEC spokesperson during a stakeholder briefing. “It also reduces counterparty risks and shortens the window for potential transactional defaults.”
According to experts, the shortened cycle will serve as a catalyst for systemic improvements. Market operators—including The Nigerian Exchange (NGX), the Central Securities Clearing System (CSCS), and registered dealing firms—have been mandated to upgrade their infrastructure to meet the technical demands of the new cycle.
The SEC, working in tandem with these key institutions, has initiated consultations, pilot implementations, and investor education campaigns to ensure a seamless transition by the November 2025 deadline. The process also includes robust training sessions and deployment of enhanced technological tools to manage the switch without disruption.
Capital market analysts argue that the move to T+2 is part of a broader modernization agenda that includes digital transformation, deeper fintech integration, and regulatory reform. These steps are crucial as Nigeria seeks to position itself as a formidable player in the African and global financial ecosystem.
By adopting global settlement standards, Nigeria’s equity market increases its appeal to foreign investors who prioritize seamless, fast-paced markets with reduced systemic risks. This harmonization also opens new opportunities for cross-border trading and better access to global capital pools.
The SEC emphasized that this policy is not an isolated initiative but forms part of a long-term strategic blueprint aimed at unlocking the full potential of Nigeria’s financial market. As capital markets evolve in tandem with digital economies, regulatory agility and operational excellence will define market leadership.
As the November 28 implementation date approaches, all eyes will be on Nigeria to assess how the introduction of a T+2 settlement framework reshapes the investor experience and strengthens the credibility of the country’s financial institutions.
