Nigeria Capital Market Transitions to T+2 Settlement Cycle
Countdown to
T+2 Settlement Cycle
Nigeria capital market will officially transition to the T+2 settlement cycle on 28 November 2025.
Nigeria Capital Market Transitions to T+2 Settlement Cycle
Faster, safer and more efficient capital market operations.
Effective 28th November 2025.
Nigeria capital market is transitioning from a T+3 to a T+2 settlement cycle following approval by the Securities & Exchange Commission (SEC). This means that all market transactions will now settle two business days after trade execution.
This transition strengthens market liquidity, enhances resilience, and aligns Nigeria with global settlement standards used across leading capital markets.
About the Transition
The upgrade to a T+2 settlement cycle reduces the time gap between trade execution and settlement, ensuring:
- Improved operational efficiency
- Reduced settlement risk
- Increased investor confidence
- Greater liquidity and faster capital recycling
What is T+2?
T+2 refers to “Trade Date + 2 Business Days.” Under this model, a trade executed on Monday settles on Wednesday.
How it works:
- T (Trade Day): Investor executes a trade.
- T+2 (Settlement Day): Cash and securities are exchanged.
Key Benefits to Investors
The move to T+2 settlement offers meaningful benefits across the market:
- Quicker access to funds and securities
- Reduced exposure to market price fluctuations
- Faster reinvestment opportunities
- Enhanced predictability in trade processing
- Improved competitiveness for Nigeria capital market
Implementation Timeline
Steering Committee Inauguration
May 2025
Gap Analysis Completed
July 2025
Regulatory Approvals
August 2025
Market Testing & Validation
September 2025
Stakeholder Sensitization
October 2025
Go-Live Transition
28 November 2025
Frequently Asked Questions
Frequently Asked Questions
