The Securities and Exchange Commission (SEC) has announced that all capital market participants will transition to a T+2 settlement cycle by November 28, 2025. This directive affects brokers, dealers, broker/dealers, and custodians, who must upgrade their systems and processes to comply. The change will shorten the time it takes to settle equity transactions from the current standard, aiming to improve market efficiency and reliability.
The transition, according to the commission, is designed to align the Nigerian market with global best practices and improve overall efficiency in trade settlement.
The decision also stems from extensive engagement with key stakeholders in the Nigerian capital market. The new T+2 rule means that trades executed on November 28 and beyond will settle within two business days.
In a statement signed by Efe Ebelo, Head of External Relations on Thursday, November 13, 2025, the commission said the move from T+3 (trade date plus three days) settlement structure to T+2 has reached the implementation stage after several months of extensive preparation and stakeholders testing.
Under the review, trades executed on Friday, November, December 2, 2025.
Meanwhile, all transactions carried out before that date will continue to follow the T+3 schedule.
This means that trades executed on Thursday, November 27, will also settle on December 2, coinciding with the first batch of T+2 settlements.
Market operators have been urged to begin technical and operational preparations immediately. The SEC stressed the importance of readiness, warning that only full compliance will ensure a smooth transition. Investors are also advised to consult with brokers and financial advisers to understand the implications of the shortened settlement timeline for their investment strategies.
The commission outlined several benefits of adopting the T+2 cycle. These include enhanced liquidity through quicker access to funds, reduced counter-party risk due to shorter settlement windows, and greater global competitiveness by aligning Nigeria’s practices with international standards.