CSCS secures regulatory, market support for T+2 settlement transition
The Central Securities Clearing System (CSCS) Plc has received firm support from regulators and operators for its planned migration to a T+2 settlement cycle, which comes into effect on November 28.
The shift, widely regarded as a milestone in modernising Nigeria’s capital market infrastructure, is expected to strengthen efficiency, cut counterparty risk, boost liquidity, and bring the market closer to global best practice. At present, transactions are settled on a T+3 basis.
During a stakeholder webinar titled “Advancing Market Efficiency through T+2 Settlement”, top industry regulators and operators reaffirmed their readiness to embrace the new framework.
Bola Ajomale, Executive Commissioner (Operations) at the Securities and Exchange Commission (SEC), said the Commission remains committed to continuous reform.
“Our plan is to progress to a T+1 cycle next year, in line with developments in advanced markets, and ultimately target T+0. We encourage all market participants to prepare for this transition and engage their clients adequately,” he stated.
Adeyinka Shonekan, Executive Director representing the CSCS CEO, explained that the clearing house had laid extensive groundwork, including the creation of a stakeholder-driven committee to benchmark processes against global standards.
Jude Chiemeka, CEO of Nigerian Exchange Limited (NGX), noted that the Exchange had already completed market-wide simulations, deployed proactive communication strategies, and established dedicated support structures to ensure a seamless switch.
Other contributors, including the Lagos Commodities and Futures Exchange (LCFE), NASD Plc, and CSCS’s Depository division, pointed to their readiness through regulatory alignment, infrastructure enhancement, stakeholder sensitisation, and strong risk management systems.
Market operators contend that the transition will not only sharpen efficiency but also strengthen Nigeria’s competitive standing on the global financial stage.