Nigeria has taken a decisive step toward modernising its capital markets with the formal transition from a T+3 to a T+2 settlement cycle, aligning the nation more closely with global market standards and accelerating its ambition to build a faster, more liquid, investment-ready financial ecosystem.

The move—one of the most consequential reforms in Nigeria’s post-trade infrastructure in over a decade—means that securities trades will now settle two business days after execution, significantly improving market efficiency and reducing systemic risk.

This T+2 Settlement Cycle shift places Nigeria on the pathway adopted by advanced economies and strengthens its ability to attract both foreign capital and long-term institutional investors.

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A Historic Milestone for Nigeria’s Capital Market Architecture

Chairman of the Central Securities Clearing System (CSCS), Temi Popoola, described the T+2 transition as a critical structural leap, not only operational but strategic in signalling Nigeria’s readiness for a new era of capital market development.

Popoola emphasized that the shift deepens:

• Market liquidity
  
• Foreign investor confidence
  
• Operational resilience
  
• Settlement predictability
  
• Systemic risk reduction
  

The reform also aligns with Nigeria’s ambition to build a $1 trillion economy, given that capital markets play a central role in mobilising investment, pricing assets efficiently and strengthening macroeconomic competitiveness.

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A Move Toward Global Alignment — and T+1 in the Future

Globally, markets are accelerating towards even shorter cycles. The U.S., Canada and parts of Europe have moved to T+1 settlement, and emerging markets are expected to follow over the next decade.

Nigeria’s adoption of T+2 demonstrates:

• Forward-looking governance
  
• Technology readiness
  
• Investor-centred policy reform
  
• Alignment with international best practice
  

Popoola noted that the transition prepares Nigeria for future innovation, including advanced clearing technologies, automated reconciliation systems and eventual integration with global post-trade platforms.

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Technology Backbone Reinforced

CSCS Managing Director, Alhaji Haruna Jalo-Waziri, highlighted that the transition followed:

• Extensive stakeholder engagement
  
• Market-wide testing
  
• Training for brokers, custodians and intermediaries
  
• A major upgrade to IBM Power 10 systems
  

These upgrades significantly expand Nigeria’s processing power, enabling:

• Faster throughput
  
• Lower settlement risk
  
• Automated reconciliation
  
• Increasing system uptime
  
• End-to-end integration across the trade lifecycle
  

Nigeria’s post-trade operations are now 95% automated, a major departure from the era of paper certificates, physical signatures and slow manual processes that historically constrained the market.

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Strengthening the Regulatory Foundation

The Securities and Exchange Commission (SEC) provided overarching leadership in managing the transition, ensuring systemic stability throughout the migration.

SEC Executive Commissioner, Operations, Bola Ajomale, noted that while the settlement timeline has changed, the structure of market operations remains intact.

However, new responsibilities arise:

• Stronger regulatory surveillance
  
• Enhanced monitoring tools
  
• More robust dispute resolution capacity
  
• Faster error detection and escalation
  
• Streamlined reporting requirements
  

These measures reinforce the credibility of the Nigerian market as a safe, modern and well-governed investment destination.

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BRANDECONOMY INSIGHT

The T+2 transition is not merely a technical upgrade—it is a strategic economic signal with implications across capital flows, investor perception and Nigeria’s global integration.

1. Nigeria Is Future-Proofing Its Capital Market

The T+2 Settlement Cycle shift ensures the country keeps pace with global innovations in settlement efficiency and prepares the ecosystem for eventual T+1 adoption.

2. Increased Liquidity Attracts Institutional Investors

Shorter settlement periods reduce counter-party risk, making Nigeria more attractive for:

• Pension funds
  
• Sovereign wealth funds
  
• Global asset managers
  
• Private equity and frontier-market traders
  

3. Technology Now Sits at the Core of Market Competitiveness

With over 95% automation and upgraded infrastructure, Nigeria is evolving into a regionally competitive post-trade environment.

4. Confidence Is Currency

In capital markets, trust is the ultimate determinant of capital inflow. T+2 strengthens regulatory reputation, operational reliability and investor assurance.

5. Nigeria Is Signalling Its Readiness for the $1 Trillion Economic Vision

Efficient markets are a prerequisite for large-scale investment mobilization. This reform places Nigeria firmly in the league of modernising economies preparing for sustainable long-term growth.

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