The Securities and Exchange Commission (SEC) in Nigeria has announced a significant change in the settlement cycle for equities transactions, shifting from the current cycle to a T+2 (trade date plus two days) settlement cycle. This change is set to take effect on November 28, 2025.

Key Highlights:

1. Improved Liquidity: The new settlement cycle will allow investors to access their funds more quickly, enhancing overall market liquidity.

2. Risk Mitigation: The T+2 settlement cycle will reduce exposure to counterparty risk, contributing to a more stable and resilient market.

3. Global Alignment: This move aligns Nigeria’s capital market with international best practices, making it a more competitive and attractive destination for domestic and foreign investors.

Implementation Details:

1. Effective Date: November 28, 2025, will mark the beginning of the T+2 settlement cycle for equities transactions.

2. Market Participants’ Obligations: Brokers, dealers, broker/dealers, and custodians must update their systems and processes to ensure a smooth transition to the new settlement cycle.

3. Investor Guidance: Investors are advised to consult with their brokers and investment advisers to understand the implications of the new settlement cycle on their transactions and investment strategies.