The Securities and Exchange Commission has announced plans to shorten Nigeria’s capital market settlement cycle from T+3 to T+2, a major reform aimed at enhancing efficiency, reducing systemic risks, and improving investor confidence.
At a Trade Associations Roundtable on stakeholder readiness for the transition held in Abuja, the Director-General of the Commission, Emomotimi Agama, said the shift marks a significant step in aligning Nigeria’s capital market with global standards, making it more competitive and attractive to both local and foreign investors.
Agama explained that reducing the settlement period from three days to two will help minimise counterparty risks by shortening the time between trade execution and final settlement. This, he noted, lowers the chances of default and strengthens market stability. He added that quicker settlement means investors will receive their funds sooner, which can be redeployed, ultimately increasing market liquidity and trading activity.
He highlighted that while advanced economies are already moving toward T+1, Nigeria must continue to evolve to remain globally relevant in an increasingly technology-driven financial environment. The T+2 move, he said, is not just operational but strategic, designed to future-proof the market against emerging global shifts.
Agama stressed that the success of the transition depends on the readiness of all market participants — brokers, custodians, clearing houses, and investors. He urged them to upgrade back-office systems, streamline processes, and ensure operational alignment ahead of implementation. The Commission, he assured, will work closely with key Financial Market Infrastructures such as the Nigerian Exchange and the Central Securities Clearing System to ensure seamless execution.
He also noted that investor education will be intensified so that all stakeholders clearly understand the benefits and implications of the change.
For small businesses and retail investors increasingly participating in the capital market, a faster settlement cycle promises quicker access to capital and reduced transactional uncertainty, creating a more reliable environment for investment and reinvestment.
Agama described the move to T+2 as a decisive leap toward a more efficient and globally competitive market, reaffirming the Commission’s commitment to a stronger market foundation built on speed, safety, and confidence.
