The Central Securities Clearing System (CSCS) Plc has confirmed its readiness to transition to a T+2 settlement cycle effective from November 28 this year as part of its efforts to enhance Nigeria’s capital market efficiency, reduce settlement risks, and align with international standards.
The Managing Director/CEO of CSCS, Haruna Jalo-Waziri, made this disclosure at a stakeholder webinar with the theme “Trade Associations: Ensuring Stakeholders’ Readiness for T+2 Settlement System”, pointing out that the CSCS was established to address settlement risks and that adopting a T+2 cycle aligns Nigeria with international standards by reducing delays, minimising risk, and improving liquidity.
Jalo-Waziri commended the Securities and Exchange Commission (SEC) for its support and openness to innovation and the NGX Group Plc and various trade associations for their active collaboration with the CSCS through the implementation process.
In his remarks, the chairman of the CSCS, Temi Popoola, spoke on the significant investments made in technology and infrastructure to ensure operational and technical readiness for the T+2 transition.
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According to him, the CSCS has conducted rigorous stress testing under high-volume and adverse conditions, demonstrating its capability to support the new system with strong redundancy and fallback mechanisms.
Popoola explained that the planned transition to a T+2 settlement cycle by the CSCS represented a significant step towards enhancing Nigeria’s competitiveness in the global investment landscape, improving operational efficiency, and strengthening investor trust in the nation’s investment market
The investment expert further harped on the collective commitment of both regulators and market participants to deepen and modernise market infrastructure.
He clarified that a successful migration to T+2 requires cooperation across the entire market value chain, including banks, custodians, registrars, fund managers, and back-office operators to ensure systems are aligned, liquidity plans are in place, and counterparty processes are updated.
Speaking during the webinar, Director-General of the Securities and Exchange Commission (SEC) Nigeria, Dr. Emomotimi Agama, maintained that the November 28 ‘Go-Live’ date remained unchanged and that transition to T+2 aligned with the commission’s 2015 to 2025 Capital Market Master Plan.
Giving an update on the project, Divisional Head of CSCS Depository, Onome Komolafe, confirmed that the project had entered the implementation phase with 19 end-to-end test scenarios successfully completed with credible results.
In his remarks at the forum, president of the Association of Asset Custodians of Nigeria (AACN), Babatunde Majiyagbe, said that from the industry perspective, the custodians were fully prepared for the November timeline for the CSCS’ transition to a T+2 settlement cycle.
According to him, his group has conducted a thorough testing on the cycle and found it to be reliable, adding that the AACN is proud of the progress made and look forward to a successful transition.
Also, the Chairman of the Association of Securities Dealing Houses of Nigeria (ASHON), Sam Onukwue, described T+2 as a desirable step in modernising the capital market, providing listed entities the opportunity to upgrade their systems.
Overall, capital market stakeholders in the country are optimistic that the transition to a T+2 settlement cycle by the CSCS will enhance the capital market operational efficiency with the attendant positive implications for investors and the nation’s economic growth.
