Onome Amuge
The Securities and Exchange Commission (SEC) has set a deadline of November 28, 2025, for all capital market participants to upgrade their systems and processes in preparation for the transition to a T+2 settlement cycle for equities transactions. This move, detailed in a circular dated June 3, 2025, aims to align Nigeria’s capital market with international standards and enhance efficiency.
The directive follows a comprehensive review of the current settlement cycle and extensive engagements with industry stakeholders. The SEC confirmed that, effective November 28, 2025, all equity transactions executed on the Nigerian Exchange (NGX) will be settled within two business days following the trade date.
“The T+2 settlement cycle for equities transactions would take effect on November 28, 2025. This connotes that transactions for November 28, 2025 would be settled via a T+2 cycle,” the SEC stated in its notice.
The commission emphasised that all market operators, including brokers, dealers, broker/dealers, and custodians, are required to be fully prepared for this change. Investors have also been advised to consult with their brokers and financial advisors to understand the potential impact on their trading activities and investment strategies.
The SEC anticipates several key benefits from the adoption of the T+2 cycle:
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Improved Liquidity: The expedited settlement process will allow investors quicker access to their funds, thereby enhancing overall market liquidity.
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Risk Reduction: Shortening the settlement period is expected to lower counterparty risk, contributing to a more stable and secure market environment.
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Global Competitiveness: Aligning Nigeria’s settlement practices with international standards is seen as crucial for positioning the country as a more attractive destination for both local and foreign investors.
For clarity, the SEC reiterated that a T+2 settlement cycle means the transfer of securities from seller to buyer and the corresponding payment must be completed within two business days following the trade date.
