Nigeria’s capital market community has welcomed the transition to a shorter settlement timeline, known as T+2, which will take effect on November 28, 2025. The new cycle reduces the time required to complete securities transactions from the current three business days to two, a shift that stakeholders say will strengthen market efficiency and competitiveness.
The T+2 structure ensures that payments and share transfers are finalised two business days after a trade is executed. Market operators describe the change as a key step toward reducing settlement delays, cutting risk exposure and aligning Nigeria more closely with international best practice.
According to analysts, the move from T+3 to T+2 signals an upgrade for the Nigerian market at a time when faster post-trade processes have become essential for attracting investment. They believe the shortened settlement window will lower counterparty risks, improve liquidity and enhance overall market performance, which could benefit institutional investors, retail traders and MSMEs that rely on market stability.
Investment firms observing the transition note that settling funds and securities more quickly will make Nigeria’s capital market more resilient and appealing to both domestic and foreign participants. They argue that reducing the gap between trade execution and completion strengthens confidence and improves the market’s ability to support business growth.
During a recent stakeholder webinar, the leadership of the Central Securities Clearing System emphasised that the organisation was created to manage settlement risks and that adopting T+2 directly supports this mandate. The new cycle, they explained, reduces operational delays, minimizes market exposure and improves liquidity across the board. They also acknowledged the support of the capital market regulator and other institutions for their collaboration throughout the implementation phase.
The board of the clearing system highlighted the scale of investments made in technology and infrastructure to ensure that the market is fully prepared for the transition. These upgrades, they said, will allow the system to handle the faster timeline smoothly while maintaining the integrity and reliability of post-trade operations.
The adoption of T+2 marks a significant milestone for Nigeria’s capital market as it seeks to modernize processes, strengthen investor confidence and create an environment that supports both large institutions and emerging businesses.
