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By Chukwuma Umeorah
The Central Securities Clearing System (CSCS) Plc has revealed that it has undertaken extensive infrastructure upgrades and operational process reviews to ensure a seamless transition to the Trade day plus two days (T+2) settlement cycle scheduled to commence on November 28.
T+2 means that when you buy or sell shares on the stock market, the deal is officially wrapped up two working days later. That’s when the buyer actually gets the shares in their account and the seller gets the money.
CSCS serves as the Central Depository for equities, commercial papers and bonds, licensed and regulated by the Securities and Exchange Commission (SEC) in compliance with the Investment and Securities Act 2007.
Speaking at a stakeholder webinar themed; “Advancing Market Efficiency through T+2 Settlement”, Adeyinka Shonekan, Executive Director representing the Managing Director/Chief Executive Officer of CSCS, explained that the clearing house established a stakeholder-driven committee to conduct gap analysis and benchmark CSCS processes against global standards across key performance indicators.
Divisional Head of CSCS Depository, Onome Komolafe, further highlighted the comprehensive measures taken, including a full upgrade of clearing and settlement infrastructure, a review of operational procedures, and a strengthened risk management and compliance framework. She also outlined the timelines, milestones, and technical preparations that would guide the transition, stressing that the move would place Nigeria’s capital market in the league of advanced markets.
The Securities and Exchange Commission (SEC) expressed full support for the transition, describing it as part of a broader effort to modernise the market. Executive Commissioner (Operations), SEC, Bola Ajomale stated, “The Commission’s plan is to move to a T+1 cycle next year, in alignment with trends in developed markets, and ultimately target T+0. We urge all market participants to prepare for this shift and adequately engage their clients. This initiative is a critical component of our broader capital market reforms aimed at enhancing global competitiveness.”
Market operators also assured participants of their readiness. Managing Director/CEO, Nigerian Exchange Limited (NGX), Jude Chiemeka, said the Exchange had conducted market-wide simulation exercises, adopted proactive communication strategies, and put in place dedicated support systems to facilitate the transition.
On his part, Managing Director/ Chief Executive, Lagos Commodities and Futures Exchange (LCFE), Akin Akeredolu-Ale, pointed to efforts in regulatory alignment, onboarding facilitation, and stakeholder education as steps towards fully leveraging the T+2 framework. Similarly, Head of Operations & IT at NASD Plc, Chinwe Ekeh, said the organisation had completed system testing, capacity building, and funding strategies to support the clearing of unlisted securities under the new regime.
The T+2 framework shortens the current T+3 settlement cycle, reducing counterparty risk, improving liquidity and enhancing overall market efficiency. Ekeh added that with regulators and operators aligned on its implementation, the transition is expected to build a more resilient and competitive Nigerian capital market.
