Big Big news for the Nigerian capital market!🚨
Nigeria’s capital market is entering a new era of speed, efficiency, and global competitiveness. Following directives from the Securities and Exchange Commission (SEC) and in line with the Central Securities Clearing System (CSCS) operational framework, the market will officially transition from the current T+3 (Trade Date + 3 days) settlement cycle to T+2 (Trade Date + 2 days), effective 28th November 2025.
This shift is more than a technical adjustment, it's a significant step toward enhancing liquidity, reducing systemic risk, and building stronger investor confidence. Below is a clear breakdown of what this transition means, how the T+2 system works, and what InvestNaija users can expect moving forward.
Here’s the simple breakdown below:
What Exactly Is T+2?
Every time you buy or sell a stock, the market needs a few days to “settle” things, confirm ownership, move money, transfer shares, etc.
That waiting period (settlement) is what we call T+ (Trade Date + number of days).
- Currently: T+3 → everything settled 3 business days after your trade
- New rule: T+2 → settlement now happens 2 business days after your trade
- For context: Some countries (like the US) have even moved to T+1
By moving to T+2, Nigeria is catching up with major global markets across Europe, the UK, and Asia.
So… How Does T+2 Work for You?
Nothing changes on your end; the system does all the work.
Here’s how it plays out:
- You buy or sell a stock.
- The NGX executes your trade.
- CSCS settles it two business days later.
A quick example:
Buy on Monday → settled by Wednesday
Sell on Monday → cash available Wednesday
Simple.
What This Means for Your Portfolio
✔ You get your money faster
Selling stocks? You’ll now have access to your cash one day earlier.
✔ Your ownership updates sooner
Bought stocks will show as “fully settled” faster in your CSCS account.
✔ Lower risk
Shorter settlement time = fewer days where something can go wrong behind the scenes.
✔ Easier portfolio moves
Reinvesting, switching positions, or balancing your portfolio becomes smoother and quicker.
If You’re a Trader… this is good news
✔ Better liquidity
Cash becomes available faster for your next move.
✔ Higher efficiency
You’re no longer waiting almost half a week for trades to settle.
✔ Reduced market risk
Less time between trade and settlement means less exposure to unexpected volatility. As well as more opportunities to take advantage of favorable market swings.
In short: more speed, more flexibility.
Impact on the Nigerian Capital Market
This shift isn’t just about speed it strengthens the entire system:
- Makes Nigeria more competitive globally
Foreign investors are more comfortable with markets that settle quickly.
- Improves liquidity
Faster settlements keep money flowing through the system.
- Lowers settlement risk
The shorter the wait, the lower the chances of transaction failure.
- Builds investor confidence
It shows regulators are upgrading and modernising the market.
Overall, it’s a major win for the long-term health of the Nigerian capital market.
Updates Coming to TradeINTM on the InvestNaija App
We’ve made a few behind-the-scenes tweaks, so your experience stays smooth:
✔ Faster settlement reflected on your dashboard
Your “settled” trades will show up sooner.
✔ Transaction statuses update faster
Pending → Processing → Settled will happen more quickly.
✔ No action needed from you
Everything happens automatically; you simply enjoy the faster timelines.
Final Thoughts
The move from T+3 to T+2 settlement is a big step forward for Nigeria, and an even bigger win for investors. This milestone for Nigeria’s capital market improving efficiency, reducing risk, and aligning with global standards. Faster access to funds, quicker confirmations, less risk all the things that make your investing journey smoother.
At InvestNaija by Chapel Hill Denham, our commitment is to help you invest smarter with clear information and easy-to-use tools. This transition reinforces our mission to give Nigerians access to a modern, transparent, and efficient investing ecosystem.
As the market evolves, we will continue to update features, improve user experience, and provide educational resources so you always stay ahead.
Reach out to us on all our social media platforms and let’s share your story with the world! 🌍 OR fill out this quick form: click here. #INVESTinSTORIES | Because everyone has a money story, so what’s yours?
Ready to start your journey? Download the InvestNaija app today from the Apple App Store or Google Play Store. With tools like LearnIN, SaveIN, and InvestIN, you’ll have everything you need to invest confidently and wisely.
