Nigerian Capital Market Achieves Major Milestone with T+1 Settlement Transition
Nigeria’s capital market has recorded a significant milestone with the successful transition from a T+2 to a T+1 settlement cycle, a move expected to enhance market efficiency, liquidity and investor confidence.
The new settlement regime means that investors can now complete the transfer of cash and securities within one business day after buying or selling shares on the stock exchange, compared to the previous two-day settlement period.
Speaking during the closing gong ceremony to mark the transition, the Chief Executive Officer of the Central Securities Clearing System (CSCS), Shehu Yahaya Shantali, described the achievement as more than just a reduction in settlement timelines.
According to him, the transition reflects the commitment of stakeholders to building a more efficient, resilient, competitive and globally aligned capital market.
“This achievement is far more than a reduction in settlement timelines. It demonstrates our collective commitment to strengthening the efficiency and competitiveness of Nigeria’s capital market,” he said.
Also speaking, the Director-General of the Securities and Exchange Commission, Emomotimi Agama, said the transition would contribute significantly to Nigeria’s economic growth ambitions.
He noted that faster settlement processes would improve market liquidity, increase investor participation and support the Federal Government’s goal of building a one-trillion-dollar economy.
Market operators say the T+1 settlement framework will allow investors quicker access to their funds, improve capital circulation across the market and reduce settlement risks.
The transition also brings Nigeria’s capital market closer to international best practices adopted by several leading global financial markets, further enhancing its attractiveness to both local and foreign investors.
Stakeholders expressed optimism that the development would deepen market confidence, encourage greater participation and strengthen the overall competitiveness of Nigeria’s financial sector.
Nigerian Capital Market Achieves Major Milestone with T+1 Settlement Transition