Circular on the Implementation of a New Settlement Cycle for Equities Transactions in the Nigerian Capital Market

Further to a comprehensive review of the current settlement cycle in the Nigerian capital market and extensive engagements with stakeholders, the Securities and Exchange Commission (“the Commission”) hereby informs all capital market stakeholders that the equities segment of the market would transition to a T+2 (i.e. trade date plus two days) settlement cycle, effective from November 28, 2025 . The Commission expects this migration to have a significant impact on the profile of the Nigerian Capital market by enabling: Improved Liquidity: An expedited settlement process, which allows investors to access their funds more quickly and enhance overall market liquidity.​ Risk Mitigation: Reduction of exposure to counterparty risk, thereby contributing to a more stable and resilient market.​ Global Alignment: Alignment with international best practice, which repositions Nigeria as a more competitive and attractive destination for both domestic and foreign investors. The following implementation details should be noted: Effective Date: The T+2 settlement cycle for equities transactions would take effect on November 28, 2025. This connotes that transactions for November 28, 2025 would be settled via a T+2 cycle. Obligation of Market Participants: All market participants, including brokers, dealers, broker/dealers and custodians, are required to update their systems and processes to ensure the effective implementation of the new settlement cycle.​ Investor Guidance: Investors are advised to consult with their brokers and investment advisers to understand how the new settlement cycle may impact their transactions and investment strategies. For further information or clarifications on the subject, please contact the Commission through: emidivision@sec.gov.ng Signed Management