Nigeria’s transition to a T+2 settlement cycle, which took effect on Friday, is being presented as a major catalyst in the country’s ambition to build a $1tn economy by 2030. The development was announced at a press conference held by the Central Securities Clearing System at the NGX Group headquarters in Lagos.
The Federal Government has set a target to grow the Nigerian economy to $1tn within the next six years, and key market operators say the T+2 reform is central to delivering the efficiency and investor confidence required to meet that goal.
Speaking at the event, the Chairman of the Central Securities Clearing System Plc, Temi Popoola, said the transition represents far more than a reduction in post-trade timelines.
“The transition to T+2 is not merely an operational achievement; it is a strategic signal. It’s a signal that affirms that Nigeria is committed to building a market that is anchored on efficiency, on transparency, and on global competitiveness. In a world where investors demand speed, reliability, and predictability, this achievement reflects our readiness to meet and exceed those expectations. It is a declaration that the Nigerian capital market is prepared to compete and to thrive in an increasingly interconnected global landscape.
“It represents a deliberate step towards strengthening investor confidence, deepening liquidity, reducing risk, and firmly positioning our market within the standards that define world-class financial systems. The transition to T+2 is not merely an operational achievement; it is a strategic signal. It affirms that Nigeria is committed to building a market anchored on efficiency, on transparency, and on global competitiveness,” Popoola said.
He added that the reform aligns with the macroeconomic agenda of President Bola Tinubu’s administration. “The adoption of T+2 lays the groundwork for new opportunities that are firmly aligned with Mr President’s agenda for a $1tn economy. Deepening foreign investor participation and improving post-trade efficiency are key pillars of that ambition,” he said, noting that the new settlement cycle places Nigeria on track to compete in a global financial system rapidly transitioning toward T+1.
The CSCS Managing Director/CEO, Haruna Jalo-Waziri, described the transition as the product of months of collaboration across the capital market ecosystem.
“This is the market telling the world that we are ready to compete. T+2 is not something that happens because one institution wants it. It only happens when everyone, the brokers, the custodians, the settlement banks, the exchanges, the regulators, agrees that we are capable of running faster, cleaner, safer transactions.”
He explained that the work behind the scenes was “intense, deliberate, and technical.”
“We had to re-engineer processes, test and retest our systems, and ensure that every stakeholder along the chain was aligned,” he said. “The readiness exercises were real. We didn’t just simulate success, we simulated failure and designed how to manage it.”
Jalo-Waziri said the reform sends a strong confidence signal to investors who prioritise speed and reliability. “Liquidity moves to where it is treated well,” he said. “If investors know they can get in and out quickly, with predictable settlement, they will commit more capital. That is how you deepen markets and ultimately how you grow an economy.”
He added that the T+2 change is only the beginning. “T+2 is today. T+1 is tomorrow. And real-time is where the world is going. This transition is the foundation for everything that comes next.”
Also speaking, the Executive Commissioner (Operations) at the Securities and Exchange Commission, Bola Ajomale, said the shift will demand greater regulatory agility but is vital for Nigeria’s global competitiveness.
“It’s going to challenge us to have sharper surveillance of our transactions,” he said. “It will ask us to ensure we have the capacity to detect faster errors in the system. We must open up communication channels, have very quick dispute-resolution processes, and consistently test and stress the system.”
Ajomale said he initially had concerns due to the weight of responsibility placed on the regulator and the broader ecosystem.
“I was a skeptic and a critic because we cannot afford to fail,” he said. “We’re taking a very bold step. We’re announcing to the world that we’re moving forward. Not only God forbid, but our energy and our talent will also forbid, from we don’t make this work. We will make it work.”
He noted that Nigeria is advancing in line with global market reforms. “We belong to a body of about 150 jurisdictions, and many are moving in the same direction,” he said. “By the time we communicate this to IOSCO, I know they will come back to study the Nigerian situation.”
Ajomale confirmed that the journey toward T+1 is already underway. “Let’s standardise T+2 first and make sure it’s working. Then we can move to T+1. We have a date in mind, and we’re not going to miss that date,” he said.
