Lagos: Nigeria has formally shifted from a T+3 to a T+2 settlement cycle, marking a significant advance in the ongoing modernisation of its capital market.
According to News Agency of Nigeria, T+2 settlement means securities and funds from trades will now be settled two business days after they are executed.
Mr. Temi Popoola, Chairman of the Central Securities Clearing System (CSCS), stated during a media briefing that the change represents a strategic and timely step toward global best practice. He described the transition as a historic milestone that would deepen liquidity, reduce settlement risk, and strengthen confidence among domestic and international investors. Popoola noted that the reform demonstrates Nigeria’s commitment to building a market driven by efficiency, transparency, and strong competitiveness in a rapidly evolving global landscape.
He further explained that the new settlement cycle creates a firmer platform for foreign investor participation and aligns with the national ambition of achieving a $1 trillion economy. According to him, the shift positions Nigeria to follow emerging global reforms, including moves by advanced markets towards adopting T+1 settlement cycles. ‘The transition to T+2 settlement is not just operational. It is a clear strategic signal,’ Popoola said.
He emphasized that the move positions the market to engage effectively with future innovation and support the next era of capital market development. Popoola added that shortening settlement time strengthens the industry’s underlying structure and sends a message of readiness to global financial partners. He noted that the achievement was the outcome of several months of coordinated work involving regulators, operators, intermediaries, and technology partners across the value chain.
CSCS Managing Director, Alhaji Haruna Jalo-Waziri, mentioned that the transition followed extensive stakeholder engagement, rigorous testing, and capacity-building programmes for market participants. He said the new system is supported by major technology upgrades, including a seamless migration to IBM Power 10 systems to enhance processing capacity. Jalo-Waziri recalled that the market once depended on manual processes and physical certificates, which slowed settlement and increased counter-party exposure.
He explained that post-trade operations are now 95 per cent automated, enabling faster settlement, lower risk, and improved reliability across all trading activities. He commended the CSCS board and risk-management teams for approving critical investments and ensuring compliance with global settlement and post-trade standards. ‘The new settlement system offers greater speed, stronger automation, and improved market connectivity,’ Jalo-Waziri said.
He added that investors, brokers, and custodians would now benefit from quicker settlement, reduced counter-party risk, and a more predictable trading environment. SEC Executive Commissioner, Operations, Mr. Bola Ajomale, praised Jalo-Waziri for his vision and determination in ensuring the successful delivery of the transition. Ajomale stated the development would challenge regulators to sharpen surveillance tools and enhance the capacity to identify error patterns more promptly.
He described the move as timely, especially as Nigeria works to demonstrate its attractiveness as a credible and safe investment destination. He noted that the reform changes only the settlement timeline and does not alter the structure or order of capital market operations. Ajomale added that the SEC dispute-resolution unit would receive additional staff, and the monitoring unit would enjoy stronger operational support.