SEC to start T+2 settlement cycle in capital market on Nov. 28

The Securities and Exchange Commission (SEC) says the Nigerian capital market will officially transition to a T+2 settlement cycle for equities transactions from Nov. 28. A notice signed by Mrs Efe Ebelo, Head of  External Relations of SEC, said in Abuja on Thursday, that the move was designed to align with global best practices and enhance market efficiency.

The  T+2 settlement cycle is a standard for securities transactions where the final transfer of ownership and payment occurs two business days after the trade date. For example, a stock bought on a Monday  would be fully settled by the following Wednesday (T+2), meaning the buyer must have paid for the stock and the seller must have delivered it by then.

Ebelo said the current T+3 (trade date plus three days) settlement cycle was now at the implementation stage following months of preparation and stakeholder testing. She said the transition was expected to significantly enhance the country’s capital market by allowing investors quicker access to funds, thereby enhancing overall market liquidity.

Ebelo said the move would help to reduce counterparty risk exposure, thereby fostering a more stable and resilient market environment. As the central counterparty, CSCS Plc 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. Under the new system, all trades executed on  Nov. 28, 2025, will settle on Tuesday, Dec. 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,” she said. Ebelo reaffirmed the commitment of the Commission towards building a modern, efficient, and transparent capital market. She said the commission would continue to engage stakeholders to drive further improvements and strengthen Nigeria’s position as an attractive investment destination.