November 27, (THEWILL) — The Nigerian Exchange (NGX) has introduced a shorter settlement cycle for equity trades, a move that will allow investors to gain access to their funds and shares more quickly.
Under the new system, transactions will now be settled on a T+1 basis, one business day after a trade is executed compared to the previous T+2 cycle, which required investors to wait two days for full completion.
The upgrade means that when investors buy shares, ownership will reflect in their CSCS accounts the next business day, while those who sell shares will receive their funds faster than before.
The NGX and the Central Securities Clearing System (CSCS) say the shift is designed to improve market efficiency, enhance liquidity, and reduce counterparty risk.
Market operators describe the shortened cycle as a significant milestone that aligns Nigeria with global markets such as the United States, which also adopted T+1 settlement recently. They believe the change will boost investor confidence, particularly for retail traders who require quicker access to capital to reinvest.
According to CSCS, the transition followed extensive system upgrades and testing to ensure smooth clearing and settlement across all brokerage firms and trading platforms.
The NGX noted that the new settlement framework is expected to support increased market participation and strengthen Nigeria’s position as a more competitive investment destination.
Ogochukwu Onwaeze
