Monday June 16 2025
News Source: Global Exchanges
Focus: Clearing & Settlement
Type: General
Country: Nigeria
On 3rd June 2025, the Securities and Exchange Commission (SEC) announced that the equities segment of the capital market would transition to a T+2 (trade date plus two days) settlement cycle, effective from November 28th, 2025.
The Commission expects this migration to have a significant impact on the profile of the Nigerian Capital market by enabling:
- Improved Liquidity: An expedited settlement process, which allows investors to access their funds more quickly and enhance overall market liquidity.
- Risk Mitigation: Reduction of exposure to counterparty risk, thereby contributing to a more stable and resilient market.
- Global Alignment: Alignment with international best practice, which repositions Nigeria as a more competitive and attractive destination for both domestic and foreign investors.
The following implementation details should be noted:
- Effective Date: The T+2 settlement cycle for equities transactions would take effect on November 28th, 2025. This connotes that transactions for November 28th, 2025 would be settled via a T+2 cycle.
- Obligation of Market Participants: All market participants, including brokers, dealers, broker/dealers and custodians, are required to update their systems and processes to ensure the effective implementation of the new settlement cycle.
- Investor Guidance: Investors are advised to consult with their brokers and investment advisers to understand how the new settlement cycle may impact their transactions and investment strategies.
Click on the above link for further information
