Economy
Stakeholders Brace for Improved Settlement Timeframe as T+2 Cycle Starts Friday
By Adedapo Adesanya
Stakeholders, including traders, and operators in the Nigeria financial market, are bracing for the commencement of the T+2 settlement, which will see trades on the stock market settled two business days after the date of the transaction.
The new trading cycle, which is a day shorter than the current practice, will come into effect from November 28.
The T+2 cycle is part of efforts by the Nigerian government to boost market liquidity and attract more investors in a bid to become a $1 trillion economy by 2030.
The T+2 settlement cycle represents a significant stride towards modernizing Nigeria’s capital market infrastructure and creating a more efficient, transparent, and globally-aligned financial ecosystem.
According to the Central Securities Clearing System (CSCS) Plc, this “enhances market liquidity, and significantly reduces counter-party risk.”
CSCS Plc, which is Nigeria’s premier clearing and settlement house, has received strong backing from capital market regulators and operators for its transition to a T+2 settlement cycle.
This move marks a significant milestone in advancing efficiency, risk mitigation, and global competitiveness within the Nigerian capital market.
The Nigerian market currently operates under a T+3 settlement cycle, which presents several challenges including elevated counterparty risk, lower liquidity, operational inefficiencies, and exposure to market volatility.
Transitioning to T+2 is expected to address these limitations and align the Nigerian capital market with international best practices, CSCS reiterated.
For the Securities and Exchange Commission (SEC), the success of the T+2 cycle will see the country move to a T+1 cycle next year, in alignment with trends in developed markets, and ultimately target T+0, which means a transaction is settled the same day.
The CSCS over the past few months to ensure a seamless transition has established a stakeholder-driven committee to perform gap analysis and benchmark CSCS processes against global standards across key performance metrics.
Stakeholders, including the Nigerian Exchange (NGX) Limited, the Lagos Commodities and Futures Exchange (LCFE), and the NASD Plc have indicated their readiness for adoption.
At a recent stakeholders’ meeting, the chief executive of the NGX, Mr Jude Chiemeka, expressed the Exchange’s full readiness in terms of infrastructure and product offerings. He noted that NGX had undertaken market-wide simulation exercises, proactive communication strategies, and set up dedicated support systems to facilitate the changeover.
On his part, the chief executive of the LCFE, Mr Akin Akeredolu-Ale, stressed the efforts of his organisation on regulatory alignment, onboarding facilitation, and stakeholder education to leverage the opportunities presented by the T+2 framework.
Similarly, the Head of Operations and IT at NASD Plc, Mrs Chinwe, Ekeh, reiterated the organisation’s preparedness through system testing, capacity building, and a sound funding strategy to support the clearing of unlisted securities under the new regime.
By Aduragbemi Omiyale
The chief executive of the Nigerian Exchange (NGX) Group Plc, Mr Temi Popoola, and his counterpart at the NGX Limited, Mr Jude Chiemeka, have expressed delight over the value of the bourse breaking the N100 trillion ceiling on Monday.
Yesterday, the domestic stock exchange gained 1.74 per cent, with the market capitalisation rising by N1.869 trillion to N101.807 trillion ($71.15 billion) from N99.938 trillion ($69.61 billion) and the All-Share Index (ASI) growing by 2,725.86 points to 159,218.22 points from last Friday’s 156,492.36 points.
The growth was buoyed by renewed investor demand and broad-based gains across listed stocks, resulting in a year-to-date returns of 2.32 per cent.
It was observed that the rally was driven by strong buying interest in stocks such as Cadbury Nigeria, Fidson Healthcare, and Champion Breweries, reflecting the traditional “January Effect” that often characterises early-year market activity.
Investor sentiment strengthened markedly, with market breadth improving to 9.13x as 73 equities recorded gains against eight decliners, signalling widespread participation in the rally.
“The equities market capitalisation crossing the N100 trillion mark is a defining milestone for Nigeria’s capital market and a clear signal of renewed investor confidence as the year begins.
“It reflects the market’s growing depth, resilience, and ability to respond positively to improving macroeconomic conditions and structural reforms,” Mr Popoola stated, adding that sustained collaboration between market stakeholders and regulators has played a key role in strengthening market credibility.
“Over the past two years, closer alignment between market operators, policymakers, and the Securities and Exchange Commission (SEC) has enhanced transparency, liquidity, and investor protection, reinforcing the Exchange’s role in mobilising long-term capital for economic growth,” he said.
On his part, Mr Chiemeka said, “The breadth of the market tells a positive story. We are seeing strong participation across banking, industrial, and consumer stocks, alongside rising trading volumes, which suggest growing investor confidence and a more active market at the start of the year.”
By Adedapo Adesanya
The Managing Director of the NASD Over-the-Counter (OTC) Securities Exchange, Mr Eguarekhide Longe, has said the bourse in 2026 would play its role in expanding the economic space and anchoring enduring socio-political transformation and inclusive growth in the country.
Speaking as part of his new year message, the NASD helmsman noted that the steady gains recorded in the nation’s macro-economy will translate to further gains in 2026.
“In this regard, we are optimistic about the further structural reforms and gains that will attend the implementation of the Nation’s new tax law.
“We know that there are development gaps to be covered in improving hard and soft infrastructure, as well as supporting genuine entrepreneurs across the length and breadth of the country, providing justification for scaling up projects and businesses via the instrumentality of structured capital market platforms,” he said.
He also said the flagship OTC market performed moderately with new admissions and a consolidation of the staple performers in the trading year 2025.
“2025 has turned out, in many respects, to be a year of reasonably positive performance, financially, but more a year of tangible results from the diversification of the activities on NASD,” Mr Longe said.
Business Post analysis of the bourse’s 2025 Trading Summary showed that the exchange recorded a strong expansion in market capitalisation in 2025, even as overall trading activity by deal count declined compared with 2024.
Market capitalisation on the exchange more than doubled to N2.12 trillion in 2025, representing a 106 per cent increase from N1.03 trillion in 2024. The number of admitted securities also rose marginally to 47, up from 45 in the prior year, reflecting a 4 per cent growth.
The NASD Securities Index (NSI) rose by 18 per cent to 3,543.74 points, compared with 3,002.68 points in 2024. Similarly, the NASD Pension Index advanced by 21 per cent to 1,032.88 points, up from 954.33 points.
Trading volumes surged significantly during the year. Total volume traded climbed to 14.03 billion units, marking a 377 per cent increase from 2.98 billion units in 2024. However, this sharp rise in volume contrasted with a decline in transaction value, which fell by 43 per cent to N59.29 billion, down from N103.96 billion in 2024.
The total number of deals executed on the platform dropped to 6,456, representing a 26 per cent decline from 8,724 deals recorded the previous year, indicating fewer but larger or more strategic transactions.
The exchange also recorded notable listings in 2025, with Infrastructure Credit Guarantee Company PLC (InfraCredit), Paintcom Investment Nigeria PLC (Paintcom), and MRS PLC admitted to trading. In addition, the listing of the Access Bank PLC Rights Issue contributed to market growth. Combined, new listings on the NASD in 2025 were valued at approximately N1.121 trillion.
Commercial Paper admissions unto the NASD platform exceeded N34.32 billion in the trading year and maiden offer on the NASD Digital Securities platform of a tokenised Commercial Paper stood at N5 billion.
By Adedapo Adesanya
The trading compass at the NASD Over-the-Counter (OTC) Securities Exchange pointed north on Monday, January 5 after the market closed higher by 0.60 per cent.
The NASD Unlisted Security Index (NSI) added 21.49 points to close at 3,575.33 points compared to the previous session’s 3,553.84 points just as the market capitalisation inflated by N12.86 billion to finish at N2.139 trillion, in contrast to last Friday’s value of N2.126 trillion.
The growth recorded by the NASD OTC bourse yesterday was influenced by three securities led by FrieslandCampina Wamco Nigeria Plc, which gained N4.70 to close at N51.70 per share compared with the previous N47.00 per share.
Further, Geo-Fluids Plc appreciated by 43 Kobo to settle at N6.94 per unit versus N6.51 per unit, and Central Securities Clearing System (CSCS) Plc appreciated by 37 Kobo to N36.00 per share from N35.63 per share.
Data from the alternative stock exchange showed a drop in investor appetite as the volume of trades declined by 94.7 per cent to 193,973 units from 3.6 million units, while the value of transactions decreased by 68.2 per cent to N4.5 million from N14.1 billion, with the number of deals sliding by 34.8 per cent to 15 deals compared to 23 deals.
At the close of business, CSCS Plc was the most traded stock by value on a year-to-date basis with 341,080 units sold for N12.2 million, followed by Geo-Fluids Plc with 535,970 units valued at N3.5 million, and Industrial and General Insurance (IGI) Plc with 2.9 million units exchanged for N1.9 million.
However, IGI Plc was the most active stock by volume on a year-to-date basis with 2.9 million units traded for N1.9 million. trailed by Geo-Fluids Plc with 535,970 units worth N3.5 million, and CSCS Plc with 341,080 units valued at N12.2 million.
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