Following the approval of Nigeria’s Securities & Exchange Commission (SEC), the nation’s capital market will tomorrow officially transition to the new T+2 (Trading Day plus two day) settlement cycle from tomorrow, Friday, November 28, 2025, from the current a T+3 cycle, where trade settlements are completed three business days after the transaction date.
The cycle implies, according to Coronation Registrars Limited in a notice to clients, “that settlements will now be completed two business days after the trade date, bringing the Nigerian market in line with global best practices.”
The change, it explained, is designed to, among others, “enhance market efficiency, reduce settlement and counterparty risk, improve liquidity and boost investor confidence.”
The company encouraged “all stakeholders to take note of this development and plan accordingly.”
What this means, according to Lagos-based investment banking group, Cordros Securities Limited, is that “when you buy equities on the Nigerian Exchange on a Monday, the trade will settle on Wednesday.
“Similarly, if you sell equities on a Monday, the sales proceeds will be credited to your account by Wednesday.,” the company noted.
The adjustment, it added, “marks a major step towards a more modern and responsive market. With a shorter settlement window, investors can receive sales proceeds sooner, reinvest funds more quickly and transact in a system that mirrors the pace of leading global markets.”
This improvement, it agreed with Cordros, “enhances liquidity and ultimately creates a smoother experience for investors.”
Announcing the transaction in a statement by Efe Ebelo, its Head External Relations on November 14, SEC Nigeria said the move is in a bid to align the nation’s equity market with global best practices and enhance market efficiency.
The migration, which followed months of preparation and stakeholder testing, it said, “is expected to significantly enhance the Nigerian Capital Market by allowing investors quicker access to funds, thereby enhancing overall market liquidity and reducing counterparty risk exposure, thereby fostering a more stable and resilient market environment”.
As the central counterparty, CSCS Plc, the commission assured, “has dedicated considerable effort and resources to ensure seamless operational and technical readiness throughout the transition.
“Extensive testing with market participants has been successfully conducted without any reported issues, reflecting high confidence in the market’s preparedness for this landmark change”, it added.
Under the new system, all trades executed tomorrow, Friday, November 28, 2025, will settle on Tuesday, December 2, 2025, while transactions carried out before that date will continue to follow the existing T+3 schedule. This means that trades executed on Thursday, November 27, will also settle on December 2, coinciding with the first batch of T+2 settlements.
The SEC reaffirmed its commitment to building a modern, efficient, and transparent capital market, adding that it will continue to engage stakeholders to drive further improvements and strengthen Nigeria’s position as an attractive investment destination.
