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By Daniel Adaji
The Securities and Exchange Commission (SEC) has announced that the Nigerian capital market will officially transition to a T+2 settlement cycle for equities transactions effective Friday, November 28, 2025.
The move, according to the Commission, is designed to align Nigeria’s capital market with global best practices and enhance market efficiency.
In a statement issued on Thursday and signed by Efe Ebelo, Head, External Relations, SEC Nigeria, the Commission said the migration from the current T+3 (trade date plus three days) settlement cycle is now at the implementation stage following months of preparation and successful stakeholder testing.
According to the SEC, “The migration is expected to significantly enhance the Nigerian capital market by allowing investors quicker access to funds, thereby improving overall market liquidity and reducing counterparty risk exposure. This will foster a more stable and resilient market environment.”
The statement noted that the Central Securities Clearing System (CSCS) Plc, acting as the market’s central counterparty, has invested substantial effort and resources to ensure operational and technical readiness.
“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,” the Commission disclosed.
Under the new T+2 system, all trades executed on Friday, November 28, 2025, will settle on Tuesday, December 2, 2025.
Transactions executed before that date will continue under the existing T+3 schedule. This means that trades carried out on Thursday, November 27, will also settle on December 2, coinciding with the first batch of T+2 settlements.
The SEC reaffirmed its commitment to building a modern, efficient, and transparent capital market, noting that it will continue to engage stakeholders to drive improvements and strengthen Nigeria’s position as an attractive investment destination.
The term “T+2” stands for “trade date plus two days.” It means that when an investor buys or sells a security, the settlement, the actual exchange of money and securities – occurs two business days after the trade.
In contrast, the T+3 cycle currently in use in Nigeria settles transactions three business days after the trade date.
The transition to T+2 is part of a broader international movement aimed at: Reducing systemic and counterparty risk, enhancing liquidity and market efficiency and accelerating investors’ access to funds.
By shortening the settlement period, markets become more resilient, and investors can reinvest or withdraw funds more quickly.
Major markets such as the United States, European Union, India, and South Africa have already adopted the T+2 settlement cycle.
The U.S. and Canada have recently begun implementing T+1 settlements, further shortening their cycles to strengthen market stability