Nigeria’s Capital Market Transitions to T+2 Settlement: What Investors Should Know

The Nigerian capital market is set for a major efficiency upgrade with the adoption of a T+2 settlement cycle for all equities transactions, effective November 28, 2025. This marks a significant milestone in the ongoing reforms designed to modernize the market and bring it in line with global standards. 

What Is T+2? 

T+2 simply means that transactions will now settle two business days after the trade date. For example, trades executed on November 28 will be completed on December 2, assuming no public holidays. 

This adjustment replaces the previous settlement cycle and is intended to create a faster, more reliable settlement environment for all market participants. 

Why the Shift Matters 

According to the Securities and Exchange Commission (SEC), this transition is expected to deliver several benefits to Nigeria’s investment ecosystem: 

• Enhanced Liquidity 
  Investors can access their funds or securities earlier, enabling quicker reinvestment or portfolio rebalancing. 

• Reduced Settlement Risk 
  Shorter settlement periods lower counterparty and operational risks, contributing to a more secure market structure. 

• Alignment with Global Standards 
  Many advanced markets already operate on a T+2 cycle. Nigeria’s shift improves comparability, boosts investor confidence and may support increased foreign investment. 

Together, these improvements reinforce Nigeria’s position as a competitive and efficient market in the global financial landscape. 

Implications for Investors 

The move to T+2 creates a more responsive environment for investors. Key considerations include: 

• Faster receipt of cash proceeds after selling securities 

• Improved ability to manage cash flow and short-term investment decisions 

• Greater market responsiveness and reduced exposure to delays 

While the change is expected to benefit all investors, it underscores the importance of staying informed about settlement timelines, especially for those involved in active trading or short-term liquidity planning. 

Market Operators Prepare for Implementation 

Ahead of the transition date, market operators — including brokers, custodians, clearing houses, and fund managers — are updating systems and workflows to ensure a seamless migration to the new cycle. Operational readiness will play a key role in maintaining confidence and ensuring that the expected efficiency gains are fully realised.