CSCS to launch T+2 settlement cycle in November

The Central Securities Clearing System (CSCS) of the Nigerian Exchange on Wednesday organised a sensitisation session for stakeholders on the smooth transition to a T+2 settlement cycle. Nigerian Anchor reports that the T+2 settlement cycle shall be due for launch on November 28, 2025. Towards the realisation of this objective the management of the exchange organised a webinar, bringing together capital market operators, regulators, and the Nigerian Exchange Ltd. The programme’s theme was ‘Advancing Market Efficiency through T+2 Settlement’ and it provided updates, guidance, and clarity on the transition process. CSCS Chief Executive Officer, Haruna Jalo-Waziri, highlighted the extensive groundwork done to ensure a seamless transition, stressing the importance of efficiency and liquidity in Nigeria’s capital market. Represented by Adeyinka Shonekan, CSCS Executive Director, Jalo-Waziri explained that the shortened cycle was part of CSCS’s mandate to improve efficiency and liquidity in the market. He said CSCS worked closely with the Securities and Exchange Commission (SEC), which led to the formation of a market-wide committee on settlement transition. The committee, comprising stakeholders across the market ecosystem, benchmarked global best practices, assessed risks, and recommended the optimal path for Nigeria’s capital market. Its report recommended a phased transition from T+3 to T+2, and eventually T+1. He noted that SEC’s approval of T+2 for November 2025, and T+1 for April 2026, marked a major milestone. Sub-working groups were established to amend rules, test processes, conduct gap analyses, and drive stakeholder engagement for smooth adoption. He stressed that the transition would align Nigeria’s market with global standards, strengthen liquidity, reduce risks, and boost investor confidence. The shift, he said, would enhance Nigeria’s ability to attract and retain domestic and international capital. SEC Executive Commissioner, Operations, Bola Ajomale, said the transition would redefine Nigeria’s capital market and economy. Ajomale assured stakeholders of SEC’s full support in testing and implementing the new system. “In case of modifications, our doors are open. We urge stakeholders to review systems, conduct checks, and support this transition with clients,” he added. Nigerian Exchange Ltd. CEO, Jude Chiemeka, emphasised that building a future-ready market required strong collaboration among regulators, brokers, custodians, and investors. He said implementing T+2 was a major step forward, paving the way for a T+1 settlement cycle. “The adoption of T+2 reduces the settlement period from three to two business days. NGX is prepared to lead this transformational shift,” he stated. He added that industry stakeholders were investing heavily in training and sensitisation programmes to ensure readiness. NASD Managing Director, Eguarekhide Longe, represented by Chinwendu Ekeh, said the association was ready for seamless transition, with platforms synchronised with CSCS and other stakeholders. He explained that access, trading time, and rules would remain unchanged, but proceeds from securities sales would be available sooner, enhancing liquidity and market attractiveness. Longe urged operators to strengthen processes around trade confirmation, documentation, and fund availability, stressing NASD’s commitment to collaboration. Lagos Commodities and Futures Exchange CEO, Akinsola Akeredolu-Ale, said commodities markets would greatly benefit from the T+2 cycle. He noted that farmers, aggregators, and investors would gain quicker access to funds, reduced risks, and improved confidence. He said NASD played a strategic role in achieving the transition by positioning Nigeria as a transparent, competitive commodities hub. Akeredolu-Ale added that NASD had invested in training market intermediaries and Pan-African programmes to strengthen capacity across the continent. “We have secured approval to fully engage in this new settlement ecosystem, and we are ready,” he said. Onome Komolafe, Divisional Head, CSCS Depository, gave a technical overview of the transition and reaffirmed the organisation’s readiness. 

Tinubu’s reforms will rejuvenate Nigeria’s economy – SEC

President Bola Ahmed Tinubu, has been commended for the reforms so far embarked on which are meant to rejuvenate the nation’s economy and improve the standard of living of Nigerians, the Director General, Securities and Exchange Commission (SEC), Mr. Lamido Yuguda has said. Speaking during an interview recently, Yuguda said there was a 5.23% surge in market capitalization at the NGX on the President’s first day and it was driven by optimistic anticipation of market reforms. “It is a fact that there are prevailing challenges arising from demanding macroeconomic conditions, constrained consumer spending, and rising operational costs. “Despite these challenges, there remains a shared sense of optimism that ongoing rigorous reforms will rejuvenate the nation’s economy. I therefore pledge the resolute support of the Capital Market to the Federal Government in navigating these challenges for the country’s brighter future,” Yuguda said. He stated further that Nigeria had outperformed global indices on gains in the All-Share Index (ASI) and market capitalization in the first half of 2023, an indication that the economy is being reflated. He cited the exceptional performance is attributed to several factors, such as; the appealing dividend yields offered by certain stocks, the recovery of corporate earnings, and a notable improvement in sentiments among domestic retail investors.  “All the indicators reflecting investors’ involvement – including volume, value, and the number of transactions – had demonstrated consistent month-on-month increases throughout the first half of 2023,” he added. The Director General also stated that the Investments and Securities Bill (ISB) 2023 which aims to align regulations with the modern dynamics of the market is presently being considered by the 10th National Assembly and expressed the hope that if passed into law, it will enable optimal contribution of the capital market to national development. He acknowledged that the road ahead is undeniably challenging, stating that the capital market must step forward in whatever way to lend its helping hand to the current economic reforms, adding that the market must make sacrifices to help drive the economic transformation that will change Nigeria’s fortunes for the better.