Lagos: The Central Securities Clearing System (CSCS) on Wednesday took significant steps to prepare capital market stakeholders for the transition to a T+2 settlement cycle, which is set to launch on November 28.
According to News Agency of Nigeria, the CSCS hosted a webinar that gathered capital market operators, regulators, and representatives from the Nigerian Exchange Ltd. to provide updates and guidance on the transition process. The theme for the program was ‘Advancing Market Efficiency through T+2 Settlement,’ highlighting the importance of the initiative.
Haruna Jalo-Waziri, Chief Executive Officer of CSCS, emphasized the extensive groundwork laid for a seamless transition, focusing on enhancing efficiency and liquidity in Nigeria’s capital market. Represented by Adeyinka Shonekan, CSCS Executive Director, Jalo-Waziri explained the move to a shorter settlement cycle as a strategic part of CSCS’s mandate.
The transition involves collaboration with the Securities and Exchange Commission (SEC), which led to the development of a market-wide committee dedicated to settlement transition. This committee evaluated global best practices, assessed potential risks, and recommended a phased transition from the current T+3 to T+2, and eventually to T+1. The SEC’s approval of T+2 for November 2025 and T+1 for April 2026 marks a significant milestone.
Sub-working groups have been established to amend rules, test processes, conduct gap analyses, and engage stakeholders to ensure the smooth adoption of the new system. This transition aligns Nigeria’s market with global standards, strengthens liquidity, reduces risks, and enhances investor confidence, thereby positioning Nigeria to attract more domestic and international capital.
Bola Ajomale, SEC Executive Commissioner, Operations, reiterated the importance of the transition for Nigeria’s capital market and economy, assuring stakeholders of SEC’s full support in implementing the new system. He encouraged stakeholders to review systems, conduct checks, and support the transition alongside their clients.
Nigerian Exchange Ltd. CEO, Jude Chiemeka, stressed the necessity of collaboration among regulators, brokers, custodians, and investors to build a future-ready market. The implementation of T+2 is a pivotal step forward, paving the way for a T+1 settlement cycle. Chiemeka also noted that industry stakeholders are heavily investing in training and sensitization programs to ensure readiness.
Eguarekhide Longe, Managing Director of NASD, represented by Chinwendu Ekeh, confirmed the association’s readiness for the transition, with platforms synchronized with CSCS and other stakeholders. He explained that while access, trading time, and rules would remain unchanged, the availability of proceeds from securities sales would be expedited, enhancing liquidity and market attractiveness.
Akinsola Akeredolu-Ale, CEO of Lagos Commodities and Futures Exchange, highlighted the benefits of the T+2 cycle for commodities markets, noting that farmers, aggregators, and investors would gain quicker access to funds, reduced risks, and improved confidence. NASD’s strategic role in positioning Nigeria as a transparent, competitive commodities hub was also underscored.
Onome Komolafe, Divisional Head, CSCS Depository, provided a technical overview of the transition and reaffirmed the organization’s readiness for the change.
