CSCS Launches T+1 Settlement Cycle in Nigeria: Capital Market Enters Faster Global Trading Era
Nigeria’s capital market has taken a major leap forward as the Central Securities Clearing System (CSCS) Plc officially launched the T+1 settlement cycle, marking a historic shift that places the country alongside some of the world’s most advanced financial markets. The reform completes Nigeria’s transition from a two-day settlement system to a faster, more efficient framework designed to modernize trading operations.
The announcement was made during a market-wide ceremony attended by key financial stakeholders, including the Securities and Exchange Commission (SEC), Nigerian Exchange Group (NGX Group), stockbrokers, custodians, registrars, and institutional investors. Under the new system, securities transactions executed on any trading day will now be settled on the next business day, significantly reducing the waiting period for investors.
Market operators say the change is expected to improve liquidity, reduce settlement risk, and strengthen overall confidence in Nigeria’s capital market. By shortening the time between trade execution and final settlement, the system allows investors to access their funds faster and reinvest more efficiently, creating a more dynamic trading environment.
Speaking at the launch, CSCS Managing Director and CEO, Shehu Shantali, described the transition as the result of decades of reform and modernization within the Nigerian financial ecosystem. He highlighted that the journey has evolved from a paper-based system—where investors once waited months for share certificates—to today’s fully digital infrastructure powered by automated settlement and advanced cybersecurity systems.
Other market leaders, including NGX Group CEO Temi Popoola and Chairman Umaru Kwairanga, noted that the T+1 framework will not only boost efficiency but also enhance Nigeria’s attractiveness to global investors. SEC Director-General Emomotimi Agama also called the development a “watershed moment,” stressing that it aligns Nigeria with international best practices and sets the stage for future innovations such as deeper automation and potential same-day settlement.
source: nairametrics