The Securities and Exchange Commission (SEC) has announced plans to move Nigeria’s capital market from a T+3 to a T+2 settlement cycle — a step aimed at improving market efficiency, reducing risk, and building investor confidence.
Speaking at a Trade Associations Roundtable on “Ensuring Stakeholder Readiness for T+2 Settlement” in Abuja, SEC Director-General, Emomotimi Agama, said the transition marks a major milestone in aligning Nigeria’s market operations with international standards.
“A shorter settlement cycle is the hallmark of a mature and competitive market. It reduces counterparty risk, boosts liquidity, and strengthens investor confidence,” Agama said.
He noted that under the new system, transactions will settle two business days after trade execution, allowing faster return of capital to investors and improving market liquidity.
Agama added that several advanced markets are already adopting T+1 settlements, stressing the need for Nigeria to keep pace with global trends.
“The global financial landscape is evolving rapidly. The move to T+2 is a strategic step to keep our market competitive and future-ready,” he stated.
He urged brokers, custodians, clearing houses, and investors to prepare their systems and processes for a smooth transition, adding that SEC will work with market stakeholders — including the Nigerian Exchange Limited and the Central Securities Clearing System — to ensure effective implementation.
The SEC boss further assured that the Commission would intensify investor education and awareness campaigns ahead of the rollout.
“The shift to T+2 reflects our collective ambition to build a capital market that is efficient, resilient, and globally competitive,” he said.
