The Securities and Exchange Commission (SEC) has announced that Nigeria’s capital market will officially transition to a T+2 settlement cycle for equities transactions from Friday, November 28, 2025.
The reform, aimed at aligning Nigeria with global best practices, is expected to enhance market efficiency, improve liquidity, and strengthen investor confidence ahead of the traditional year-end rally.
In a statement issued on Thursday, the SEC said the migration from the current T+3 (trade date plus three days) cycle had reached full implementation following months of preparation and rigorous stakeholder testing.
“The migration is expected to significantly enhance the Nigerian capital market by allowing investors quicker access to funds, improving overall liquidity, and reducing counterparty risk exposure,” the Commission noted.
The Central Securities Clearing System (CSCS) Plc, which serves as the market’s central counterparty, was praised for ensuring operational and technical readiness. “Extensive testing with market participants has been successfully conducted without any reported issues,” the SEC said, adding that the initiative represents a “landmark change” in Nigeria’s market infrastructure.
Under the new settlement framework, all trades executed on Friday, November 28, 2025, will settle on Tuesday, December 2, 2025, while earlier transactions will continue under the existing T+3 system. The SEC reaffirmed its commitment to building a modern, transparent, and globally competitive market that continues to attract domestic and international investors.
Analysts hail moves as catalyst for market
Analysts have welcomed the SEC’s announcement, describing the T+2 migration as one of several positive catalysts that could strengthen the market and spark renewed investor interest in the last quarter of the year.
Mr. Blakey Ijezie, a chartered accountant and convener of the quarterly Blakey’s National Economic Conference as well as Blakey’s National Tax Conference, said the shift represents a major leap in market modernization. “The migration to T+2 is very good for the market. It means faster settlement — when you sell, you can access your money within two days. That alone improves liquidity and investor confidence,” he said.
Ijezie added that several other policy shifts, including the potential extension of trading hours and a review of the Capital Gains Tax (CGT) on securities, could complement the T+2 transition. “Extending trading hours will bring more liquidity to the market. The current four-and-a-half-hour window from 10 a.m. to 2:30 p.m. is too short. A longer session aligns us more with global markets and creates room for better participation,” he explained.
He also highlighted that the Finance Minister’s recent comments on reviewing the CGT implementation had already improved investor sentiment. “Once the government reviews or suspends the tax, confidence will rebound further, as we saw the market start to recover immediately after the minister’s statement,” he added.
Broader reforms expected to lift Year-End sentiment
Supporting this view, Mr. Tajudeen Olayinka, CEO of Wyoming Capital and Partners, said the combination of these reforms would likely drive a stronger market rally as 2025 winds down. “By the end of November, the T+2 cycle will be operational, the CGT issue may have been resolved, and trading hours extended. All these will elicit positive investor sentiment and trigger a year-end rally,” he predicted.
According to Olayinka, extending the trading window will also help integrate the Nigerian Exchange (NGX) with global markets. “If trading closes by 4 p.m., it will overlap with the opening of international markets like New York and London, allowing foreign portfolio investors to participate more actively,” he said.
He noted that institutional and foreign investors remain the key drivers of market activity. “These investors are moving the market. Better alignment with international trading schedules enhances liquidity and attracts fresh inflows,” he added.
Olayinka concluded that the combination of regulatory reforms, improved policy clarity, and technical upgrades positions the market for a strong finish. “By December, the tension in the market will ease; activities will peak, and we’ll likely close the year on a very positive note,” he said.
With the T+2 transition, analysts agree that Nigeria is taking a significant step toward a more efficient, competitive, and investor-friendly capital market — one poised for renewed growth as 2025 draws to a close.
