Nigeria Accelerates Capital Market Operations with T+2 Settlement
The Nigerian capital market has taken a significant leap toward global integration with the successful implementation of the T+2 settlement cycle, marking a crucial milestone in the country's financial sector development. This strategic move positions Nigeria among markets adopting international best practices for trade settlements.
The transition from T+3 to T+2 settlement officially went live on November 30, 2024, setting the stage for the first batch of equity trades to be completed under the shortened timeline the following Tuesday. This reduction means equity trades will now settle within two days instead of three, significantly improving market efficiency.
Collaborative Effort Across Market Ecosystem
Haruna Jalo-Waziri, the Managing Director and CEO of Central Securities Clearing System (CSCS) Plc, emphasized that this achievement represents months of intensive collaboration across the entire capital market ecosystem. During a press conference held at the Nigerian Exchange Limited (NGX) in Lagos, senior executives detailed the extensive work undertaken to modernize the clearing and settlement framework.
Jalo-Waziri described the successful transition as a unified signal from the Nigerian market to the global financial community that the country is prepared to compete at a higher level. He stressed that such a fundamental shift cannot be driven by a single institution but requires consensus among all stakeholders including brokers, custodians, settlement banks, exchanges, and regulators.
The CSCS chief explained that the behind-the-scenes work was intense, deliberate, and highly technical, designed to send a strong confidence signal to investors who prioritize speed and reliability in their investment decisions.
Technological Infrastructure and Global Alignment
In outlining the technological backbone supporting this upgrade, Jalo-Waziri highlighted that CSCS deployed its proprietary core software warehouses developed by Tartar, recognized as the world's largest provider of post-trade solutions. The main software environment, servers, and security architecture are fully operational, providing the resilience and scalability required for seamless shorter settlement cycles.
The strengthened infrastructure will support faster settlement while enhancing market stability and investor confidence, ultimately boosting the overall competitiveness of the Nigerian capital market as it continues integrating with global financial systems.
Temi Popoola, Chairman of CSCS Plc, characterized the transition as a strategic move designed to strengthen investor confidence, enhance market liquidity, and align Nigeria more firmly with standards defining world-class financial systems. He noted that adopting T+2 expands the boundaries of what the market can achieve while reinforcing groundwork for future technological and structural innovations.
Regulatory Endorsement and Future Outlook
Dr. Emomotimi Agama, Director-General of the Securities and Exchange Commission (SEC), described the successful transition as a strong signal that Nigeria is committed to building a credible, resilient market ecosystem capable of attracting substantial investment. Represented by Commissioner of Operations Mr. Bola Ajomale, he commended the industry committee and market operators for their dedication, coordination, and technical expertise in delivering this milestone.
The SEC leadership urged all market participants to remain vigilant as the new cycle becomes operational, emphasizing the need for continuous monitoring, strict adherence to operational guidelines, and collective responsibility to ensure market stability and integrity during and after the transition period.
This reform represents a significant step in Nigeria's journey toward creating a market environment that prioritizes efficiency, transparency, and global competitiveness while reducing settlement risks and improving operational efficiency for brokers, investors, and other market participants.
