The Nigerian capital market has transited to the go-live T+2 settlement cycle marking a significant feat for the market.
The transition from the long-standing T+3 cycle represents a significant milestone in the ongoing modernisation of Nigeria’s post-trade infrastructure and reflects the market’s collective commitment to global best practices.
Voice of Nigeria reports that with the implementation of T+2, all trades executed from Friday 28th November will now settle two business days after the trade date, thereby strengthening operational efficiency, enhancing market liquidity, and significantly reducing counter-party risk, ultimately improving investor experience and ensuring quicker access to funds and securities.
Led by Central Securities Clearing System Plc, Nigeria’s premier capital market infrastructure, the transition also positions Nigeria more competitively within the global capital market landscape, where shorter settlement cycles are increasingly becoming the standard.
The Managing Director and Chief Executive Officer of Central Securities Clearing System Plc, Haruna Jalo-Waziri, expressed confidence in the readiness of the market.
“The successful commencement of the T+2 settlement cycle is the product of extensive collaboration, rigorous testing, and the unwavering commitment of all market stakeholders. We are proud to lead this change at a time when efficiency and resilience are critical pillars for market competitiveness,” he stated.
Mr Jalo-Waziri further added, “As we embrace the T+2 framework, we are unlocking efficiencies that will shape the future of Nigeria’s capital market for years to come. This milestone sends a clear message that the Nigerian market is evolving, forward-thinking, and determined to match and surpass global benchmarks in post-trade operations.”
The Central Securities Clearing System has worked closely with the Securities and Exchange Commission, market operators, custodians, and key trade associations to ensure smooth implementation.
Comprehensive readiness assessments, industry-wide testing, and participant engagements were conducted to guarantee that systems, processes, and operational frameworks were aligned with the new cycle ahead of today’s launch.
As the market adjusts to this new settlement environment, the System has reiterated its commitment to providing continuous support and guidance.
The organisation has also made implementation procedures and guidelines available to all market participants to aid operational clarity and ensure seamless adoption.
Olusola Akintonde