Market News

By Chinwendu Obienyi

Nigeria’s capital market is poised for a major liquidity surge as the Securities and Exchange Commission (SEC) prepares to implement a T+2 settlement cycle for equities transactions in the next 30 days.

The reform, which shortens the settlement period from three business days to two, is expected to unlock trillions of naira in market liquidity, accelerate capital turnover, and align the Nigerian Exchange Limited (NGX) with international best practices.

Under the new system, trades executed on a Monday will settle by Wednesday, enabling investors to access funds faster and reinvest more efficiently. The SEC through its Directorr General, Emomotimi Agama, had stated that the date for the new settlement, November 28, 2025, remains sacrosanct, adding that the success of the migration depends on the preparedness of all market participants, including brokers, custodians, clearing houses, and investors.

Speaking at a Trade Associations Roundtable on “Ensuring Stakeholder Readiness for T+2 Settlement” in Abuja recently, Agama urged trade associations to take the lead in ensuring operational and technological readiness.

“Your readiness and that of your members is the single most important determinant of our success. This means recalibrating back-office operations, upgrading systems, and ensuring all market participants are informed and prepared”, he said.

Daily Sun investigations can reveal that trading firms have now informed the regulators and investors of their readiness to unboard the new settlement cycle.

In a notice seen by Daily Sun on Wednesday, Cordros Securities Limited, noted that the new cycle marks a major step towards a more modern and responsive market, adding that with a shorter settlement window, investors can receive proceeds from sales sooner, reinvest funds more quickly, and transact in a system that mirrors the pace of leading global markets.

“This is an improvement that enhances liquidity and ultimately creates a smoother experience for investors. As the date approaches, we remain available to walk you through how this change may benefit your investment or trading plans”, the financial service company said.

>span class="s3">Speaking at a recent stakeholder webinar, CSCS CEO Haruna Jalo-Waziri emphasized that adopting T+2 settlement is part of the organisation’s mission to reduce settlement delays, minimise operational risks, and modernize Nigeria’s post-trade infrastructure.

“This move places Nigeria in line with global standards, reduces risks inherent in longer settlement cycles, and strengthens investor confidence,” Jalo-Waziri said.

Highlighting several immediate benefits, market participants explained that faster settlements allow investors to reinvest proceeds sooner, enhancing portfolio returns, and reduce the time brokers and custodians are exposed to counterparty risk.

Chief Business Officer, Optimus by Afrinvest, Ayodeji Ebo, said that a more efficient settlement system may encourage greater foreign participation, particularly from institutional investors who often prioritise operational reliability and market efficiency. “Foreign portfolio inflows are often sensitive to settlement timelines. With T+2, Nigeria sends a clear signal that its market is modernising, which could attract significant foreign capital”, Ebo said.

>span class="s3">As Nigeria approaches the November rollout, market participants are bullish on the prospects. With a faster settlement cycle, improved operational efficiency, and potential foreign inflows, the capital market appears set for a trillion-naira liquidity boom, reinforcing Nigeria’s position as one of Africa’s leading equity markets.