Read Time:1 Minute
The Central Securities Clearing System has confirmed the go-live of the T+2 settlement cycle in the Nigerian capital market, marking a significant step toward faster trade completion and stronger market efficiency.
Under the new structure, transactions executed on the Nigerian Exchange will now settle within two working days. Market operators say the transition reduces counterparty exposure and aligns Nigeria with international best practices used in major global markets.
CSCS stated that the implementation followed extensive system upgrades, stakeholder training, and readiness assessments across brokerage firms, custodians, and clearing members. The move is also expected to improve operational resilience and reduce settlement delays, a long-standing challenge for many investors.
Analysts believe the change will enhance liquidity by shortening the time investors wait to access their funds. They also say that faster settlement could attract more foreign portfolio investors who often prioritize markets with efficient post-trade processes.
Stakeholders across the industry have welcomed the transition, describing it as a long-overdue modernization milestone. Market regulators noted that the shift supports Nigeria’s broader goal of improving transparency, strengthening market infrastructure, and increasing competitiveness in the global investment landscape.
Despite the optimism, experts advise that the full benefits will depend on sustained compliance with operational standards and continued collaboration among market participants. They emphasize the need for strict adherence to documentation timelines and settlement protocols.
For many investors, the T+2 era signals the beginning of a more agile, predictable, and investor-friendly capital market environment.
Under the new structure, transactions executed on the Nigerian Exchange will now settle within two working days. Market operators say the transition reduces counterparty exposure and aligns Nigeria with international best practices used in major global markets.
CSCS stated that the implementation followed extensive system upgrades, stakeholder training, and readiness assessments across brokerage firms, custodians, and clearing members. The move is also expected to improve operational resilience and reduce settlement delays, a long-standing challenge for many investors.
Analysts believe the change will enhance liquidity by shortening the time investors wait to access their funds. They also say that faster settlement could attract more foreign portfolio investors who often prioritize markets with efficient post-trade processes.
Stakeholders across the industry have welcomed the transition, describing it as a long-overdue modernization milestone. Market regulators noted that the shift supports Nigeria’s broader goal of improving transparency, strengthening market infrastructure, and increasing competitiveness in the global investment landscape.
Despite the optimism, experts advise that the full benefits will depend on sustained compliance with operational standards and continued collaboration among market participants. They emphasize the need for strict adherence to documentation timelines and settlement protocols.
For many investors, the T+2 era signals the beginning of a more agile, predictable, and investor-friendly capital market environment.