The Securities and Exchange Commission has announced that the Nigerian capital market will transition to a T+2 settlement cycle for equities transactions from November 28, 2025.

In a statement on Wednesday, the change follows a review of the current settlement cycle and extensive consultations with stakeholders, the commission said in a circular issued on Tuesday.

Under the new system, equities transactions will now be settled two business days after the trade date, instead of the current T+3 cycle. This move aligns the Nigerian capital market with global standards and is expected to enhance market liquidity, reduce counterparty risk, and make Nigeria a more attractive investment destination.

The circular read, “The T+2 settlement cycle for equities transactions will take effect on November 28, 2025. This connotes that transactions executed on that day will be settled using the T+2 cycle.”

According to the SEC, the migration is aimed at improving the overall market infrastructure. “An expedited settlement process allows investors to access their funds more quickly and enhances market liquidity,” the commission stated.

The commission further noted that the move would also mitigate risks by reducing market exposure to default and systemic risks arising from longer settlement periods.

“The transition is a significant step in repositioning the Nigerian capital market in line with international best practice. It places Nigeria in a stronger position to attract both domestic and foreign investors,” the SEC added.

All capital market operators, brokers, dealers, custodians and other intermediaries are required to update their systems and internal processes to ensure a smooth implementation of the new cycle.

Investors were advised to consult their brokers and investment advisers to understand how the T+2 cycle may affect their transactions and overall investment strategies.

The PUNCH reported that the Securities and Exchange Commission says its Collective Investment Schemes increased to over N3 tn in 2024.