By Chioma Obinagwam
The Securities and Exchange Commission (SEC) Director General, Emomotimi Agama, represented by Mr. Bola Ajimola, Executive Commissioner of Operations, has unveiled an ambitious plan to transition Nigeria’s capital market to a T+2 settlement cycle by November 2025, with a further move to T+1 by April 2026.
Confiance News reports from a webinar titled: “Advancing market efficiency through T+2 settlement”, held on Wednesday.
Speaking during the virtual event, Ajimola outlined the SEC’s vision for market transformation, emphasizing a decade-long master plan to enhance efficiency, liquidity, and global competitiveness.
The transition from the current T+3 settlement cycle to T+2 is a significant step forward, positioning Nigeria ahead of many developed economies. Ajimola highlighted the benefits, including reduced counterparty risk, quicker access to liquidity, and alignment with global market standards. “Investors will sleep better knowing there’s 24 hours less wait time,” he noted, underscoring the reform’s role in boosting investor confidence and enabling capital to work faster.
The SEC has assured full support for market participants, encouraging broker-dealers, custodians, registrars, and issuing houses to conduct internal checks, stress-test systems, and sensitize clients about the upcoming shift. “Our door is open for communication and consultation to ensure a seamless transition,” Ajimola added, pledging to implement necessary rules and operational changes.
In a welcome address, Mr. Adeyinka Shonekan, Executive Director of the Central Securities Clearing System (CSCS) Plc, representing MD/CEO Mr. Haruna Waziri, emphasized the collaborative effort behind the initiative. A committee of key stakeholders benchmarked global best practices to recommend the optimal path for reducing settlement cycles. “This transition aligns Nigeria’s capital market with global standards, strengthens liquidity, reduces risks, and enhances investor confidence,” Shonekan stated.
Confiance News learned that the move is expected to attract and retain both domestic and international capital, reinforcing Nigeria’s position as a competitive financial hub. Market participants are urged to prepare for a smooth transition to T+2, with T+1 on the horizon.
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