Stockbrokers have commended the Central Securities Clearing System (CSCS) for its decision to shorten the settlement and delivery cycle for equities transactions from T+3 to T+2.
They also said the move is a major milestone for the country’s capital market.
The new settlement framework, which takes effect on Nov. 28, means transactions will now be finalised within two business days instead of three.
CSCS had earlier announced plans to adopt a T+1 cycle by April 2026, with the long-term vision of eventually achieving T+0, where trades are settled instantly, just like cash transactions.
Explaining the rationale behind the changes, CSCS Chief Executive Officer, Mr Haruna Jalo-Waziri, said the shorter cycle was designed to strengthen market efficiency.
He also said it woud boost liquidity, reduce counterparty risks, and improve Nigeria’s competitiveness in attracting foreign portfolio investors.
In an interview with th News Agency of Nigeria (NAN), Mr David Adonri, Vice President of Highcap Securities Ltd., said the CSCS initiative would enhance the market’s attractiveness to both domestic and foreign investors.
“The elimination of one day makes equities closer to cash in terms of liquidity.
“It also places Nigeria in line with global best practice.
“Foreign investors, who often compare settlement cycles across markets, will be very satisfied with this development,” Adonri said.
He added that the change was not just symbolic but strategic.
“Efficient settlement of cash and delivery of securities remains the essence of the secondary market.
“The move from T+3 to T+2 is proof that CSCS has learned lessons and is ready to keep pushing until we reach T+0,” he noted.
According to him, achieving T+0 will revolutionise the Nigerian market by putting equities on the same liquidity level as demand deposits.
“Imagine a market where your shares are as liquid as your cash, that is the future we are working toward,” he said.
In a similar vein, Mr Aruna Kebira, Founder of Globalview Capital Ltd., commended CSCS for listening to the market and moving in step with international standards.
“This decision is in line with investors’ expectations.
“Many shareholders have long clamoured for quicker access to the proceeds of their sales so they can reinvest or meet urgent financial obligations,” he said.
He noted that the plan to further reduce the cycle to T+1 in 2026 was particularly exciting for younger investors.
“Gen Z investors want speed, liquidity and transparency.
“This development speaks directly to that demographic, making the Nigerian market more appealing to them,” Kebira said.
Kebira also highlighted the role of technology in enabling the changes, pointing to innovations such as Direct Cash Settlement (DCS).
This, he noted, allows payments to go directly into investors’ bank accounts rather than through brokers, reducing delays and disputes.
“CSCS has been consistent in adopting technology to improve transparency and efficiency.
“The platform that allows investors to independently monitor their stock positions across brokers is another milestone in investor protection,” he added.
Market analysts say the reduction of the settlement cycle could help improve trading volumes on the Nigerian Exchange (NGX), as faster settlement frees up capital for reinvestment.
This, in turn, could attract more institutional investors, particularly foreign funds that require robust risk management systems.
Mrs Olanrewaju Okeowo, a retail investor, told NAN that the recent development would help boost the confidence of small-scale investors, including herself.
“One of the significant challenges we’re facing is the delay in accessing funds after selling shares.
“Reducing the settlement time would have a huge impact, especially for frequent traders.
”If the process now takes two days instead of three, it makes a big difference for people who trade regularly,” she said.
NAN recalls that CSCS said it would continue to engage market operators, regulators, and stakeholders to ensure a smooth transition to the T+2 cycle in November, with training and awareness programmes planned to help investors and brokers adapt.
