Small and Medium Enterprises (SMEs) in Nigeria are set to benefit as the nation's stock market prepares to shorten its transaction settlement cycle from T+3 to T+2 with effect from November 28, 2025.
Currently, the stock market operates on a T+3 cycle, meaning trades are formally concluded three business days after the day of transaction, totaling four days. With the transition to T+2, trades will now be settled within three days, allowing faster access to funds and reducing risks for investors and businesses, including SMEs that rely on quicker liquidity.
Stakeholders at a webinar hosted by the Central Securities Clearing System (CSCS) explained that the longer cycle created inefficiencies such as higher counterparty risks, reduced liquidity, and exposure to market volatility. Moving to T+2, they noted, will improve efficiency, enhance risk management, and bring the Nigerian capital market closer to international standards.
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The Securities and Exchange Commission (SEC) emphasized its commitment to modernising the market, with plans to migrate further to T+1 and eventually T+0 in the coming years, ensuring same-day settlement. This reform is expected to give SMEs faster turnaround in capital raising and business operations.
Leaders of key market institutions, including CSCS, the Nigerian Exchange (NGX), and the Lagos Commodities and Futures Exchange (LCFE), confirmed readiness for the transition, highlighting infrastructure upgrades, system simulations, and stakeholder education.
According to them, the T+2 system will not only align Nigeria with advanced markets but also create a more efficient, transparent, and SME-friendly financial ecosystem, where small businesses can access capital more quickly and manage risks better.
