Nigeria’s Capital Market Moves to T+2 Settlement Cycle
The Nigerian capital market is set for a significant reform as it transitions from a T+3 to a T+2 settlement cycle, effective Friday, November 28, 2025. “T” represents the trade date, meaning the settlement of a transaction — the transfer of shares and funds — will now occur two business days after a trade, instead of three.
This move aligns Nigeria with global best practices, reduces counterparty risk, and enhances overall market efficiency. Investors stand to benefit in several ways: faster access to funds when selling shares, the ability to reinvest sooner, and improved liquidity that could stimulate more trading activity. The shorter settlement cycle also lowers the window for potential market disruptions or defaults by brokers.
For example, if you buy shares on Monday (T), ownership is confirmed by Wednesday (T+2). Similarly, selling shares on Monday ensures funds are available by Wednesday, giving investors quicker control over their assets. Transactions before the November 28 rollout will still follow the T+3 schedule.
Regulators and the Central Securities Clearing System (CSCS) have assured market participants that all systems are prepared for a smooth transition. This reform is expected to boost investor confidence, attract both retail and foreign investors, and strengthen Nigeria’s capital market globally.
With faster settlements, reduced risks, and increased flexibility, the T+2 cycle marks a new era for stock trading in Nigeria.
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