Market operators in Nigeria are backing the Securities and Exchange Commission (SEC) over its decision to move to a T+2 settlement cycle, effective from November 28, 2025.
According to The Sun Nigeria, the Commission issued a formal notice on June 3 confirming the transition. Following a detailed review and consultations, Nigeria’s equity transactions will now settle two business days after the trade date, in line with practices in advanced markets.
SEC: Migration Will Boost Liquidity and Reduce Risk
The SEC explained the impact of this migration in its statement:
“The Commission expects this migration to have a significant impact on the profile of the Nigerian capital market by enabling improved liquidity, risk mitigation and global alignment.”
To ensure effective implementation, the Commission has directed all stakeholders—brokers, dealers, custodians—to upgrade systems and processes ahead of the November deadline.
Investors have been encouraged to consult with financial advisers to understand how this change could affect trading and investment planning.
Technical Measures in Place Ahead of November Deadline
SEC officials also confirmed that technical working groups and pilot testing have been established to identify and resolve any operational concerns before the rollout date. These steps are aimed at ensuring a seamless transition for all market participants.
Analysts and Operators Back SEC Deadline
The announcement has drawn praise from financial analysts and market stakeholders. Mike Eze, CEO of Crane Securities, described the move as timely and transformative:
“I saw the announcement and I am extremely happy that the SEC under the leadership of Dr Agama is doing its best to reposition Nigeria’s capital market on the global map.”
He added that the faster, more predictable settlement cycle is expected to attract greater foreign investment, although infrastructure upgrades remain necessary.
Echoing this position, capital market analyst Ifeoma Nwankwo said, “A T+2 cycle is already standard in most developed markets, and this move signals to both local and foreign investors that Nigeria is serious about improving market infrastructure.”
Operators Urge Smooth Implementation Strategy
Despite widespread support, some operators are urging caution. They stressed the importance of a clear, well-planned rollout strategy to avoid early implementation problems.
Sam Onukwue, Chairman of the Association of Securities Dealing Houses of Nigeria (ASHON), expressed concern over the pace of changes under the new Investment and Securities Act (ISA) 2025. He warned that brokers may face challenges in adapting to compliance regulations, fintech integration, and digital asset provisions.
A Step Toward Global Market Competitiveness
The SEC deadline for T+2 settlement marks a bold step toward making the Nigeria capital market more attractive to global investors. It signals stronger regulatory maturity and improved operational efficiency.
For stakeholders, the transition presents both opportunity and responsibility. With proper preparation, equity transaction reforms such as this can elevate market confidence and improve the trading experience in one of Africa’s most dynamic markets.
Article updated 2 days ago. Content is written and modified by multiple authors.
