Transition to T+2 settlement cycle will boost market performance - Analysts

Analysts and capital market forms have hailed Nigeria's proposed transition to a T+2 settlement cycle as a move that will boost the market performance.

The T+2 system ensures that securities transactions, including payment and share transfer, are completed within two business days of trade execution.

The Nigerian capital market is set to transition to a T+2 settlement cycle, reducing the time for securities transactions from three business days (T+3) to two, effective November 28, 2025.

Commenting, Analyst at Investment One noted that the shift represents a significant upgrade from the existing T+3 settlement cycle, reducing settlement and counterparty risk while boosting overall market performance.

Afrinvest Limited added that the Securities and Exchange Commission (SEC) has reviewed and approved the transition, emphasizing that the faster cycle will make Nigeria’s market more competitive, liquid, and resilient.

Speaking at a webinar themed “Trade Associations: Ensuring Stakeholders’ Readiness for T+2 Settlement System”, CSCS Managing Director/CEO Haruna Jalo-Waziri said the new timeline reduces delays, minimizes risks, and improves market liquidity.

He also thanked the SEC, the NGX Group Plc, and various trade associations for their collaboration during the implementation process.

The CSCS Chairman highlighted the significant investment in technology and infrastructure to ensure operational and technical readiness for the transition, signaling the market’s commitment to modernizing Nigeria’s post-trade environment.

The T+2 adoption positions Nigeria alongside global financial markets, improving efficiency and reinforcing investor confidence in the country’s capital market.