Nigeria’s capital market will officially adopt a T+2 settlement cycle for equities transactions from Friday, November 28, 2025, marking a major shift toward global best practices and a significant milestone in the country’s market modernization efforts. The Securities and Exchange Commission confirmed that the transition from the existing T+3 system has reached full implementation after months of preparation and extensive testing involving market operators and the Central Securities Clearing System.
The Commission emphasized that the shorter settlement window is expected to improve liquidity, reduce counterparty risks and give investors quicker access to their funds at a time when market activity usually picks up ahead of the year-end rally.
The regulator described the development as a landmark change in Nigeria’s market infrastructure, noting that the clearing system had successfully completed operational and technical checks without issues. Under the new structure, trades executed on November 28 will settle on December 2, while earlier trades remain under the previous cycle.
The Commission reiterated its commitment to building a transparent and globally competitive market that attracts both local and foreign investors. For SMEs active in the financial and investment services space, the faster settlement cycle will support better cash flow management, quicker reinvestment opportunities and improved turnaround time for investors who rely on trading as part of their business strategy.
Market analysts have welcomed the development, calling it one of the strongest catalysts for boosting investor confidence in the final quarter of the year. A leading chartered accountant who convenes national economic and tax conferences explained that the shorter settlement period represents a leap in market modernisation because it allows investors to access their money more quickly after a sale.
He added that the T+2 transition aligns Nigeria with other advanced markets and sends a strong signal that the country is positioning itself for deeper participation in global capital flows.
He also pointed out that additional reforms such as a potential extension of trading hours and an ongoing review of Capital Gains Tax on securities could further energise the market. According to him, extending the trading session beyond the current four-and-a-half-hour window would increase liquidity and allow the market to mirror global exchanges more closely.
He noted that the Finance Minister’s recent comments on revisiting the tax had already sparked a rebound in investor sentiment, with expectations that a full review or suspension of the tax could further lift confidence.
Supporting this outlook, an investment expert who heads a capital firm said the combined effect of these reforms is likely to create stronger momentum as the year draws to a close. He predicted that by the end of November, the T+2 settlement cycle would be active, the tax concerns might have been addressed and trading hours could be extended, all of which would help fuel a year-end rally.
He explained that extending Nigeria’s trading window to close around 4 p.m. would overlap with the opening of major international markets, making it easier for foreign portfolio investors to participate in real time. This alignment, he said, would attract more inflows and create a more liquid and dynamic market environment.
He emphasised that institutional and foreign investors remain the major drivers of the equities market, and reforms that improve market efficiency tend to attract these groups. With improved policy clarity and upgraded infrastructure, he believes the market is positioned for a strong finish, predicting heightened activity in December and a more stable investment environment.
As Nigeria prepares to transition to the T+2 system, analysts agree that the move signals a clearer commitment to reform and modernization.
For MSMEs, especially those connected to investment advisory, fintech, brokerage services or financial literacy training, the development opens new opportunities to design products and content that help retail and small business investors understand and take advantage of the faster and more efficient market cycle.
The shift reinforces confidence that the capital market is moving toward a structure that supports growth, competitiveness and renewed investor participation as 2025 winds down.
