The Chairman of the Association of Securities Dealing Houses of Nigeria (ASHON), Sehinde Adenagbe, has praised the development as a “transformative” shift that will improve market efficiency while strengthening confidence among investors and market operators.
Speaking on the reform, Adenagbe said the transition shortens the settlement timeline for securities transactions from two business days to one, fundamentally altering how brokerage firms process trades.
“The T+1 settlement cycle is a major reform that will improve market efficiency and strengthen the integrity of the trading ecosystem. However, it also raises operational expectations for brokers, who must now maintain near real-time settlement readiness, stronger liquidity buffers, and more automated post-trade processes,” he said.
The new framework means that once a trade is executed, cash and securities must now be exchanged within a single business day—placing greater pressure on brokerage firms to streamline operations and manage liquidity more efficiently.
Adenagbe noted that the reform would significantly reduce counterparty and settlement risks, which have long been key concerns in capital market operations. By compressing the settlement window, the likelihood of transaction delays or defaults is expected to decline.
He added that the reform would also improve market confidence by accelerating the movement of funds and securities across the system.
“The long-term gains are substantial, including lower settlement risk, improved market confidence, and greater operational efficiency. Nonetheless, brokerage firms must be proactive in managing liquidity and strengthening internal processes to ensure seamless compliance with the new settlement cycle,” he stated.
According to him, stockbroking firms will now be required to rethink liquidity management strategies, invest more heavily in automation, and strengthen back-end systems to meet the demands of faster transaction cycles.
He commended the Securities and Exchange Commission (SEC) for approving the transition and praised CSCS Plc for driving the implementation, describing it as a step that aligns Nigeria’s market infrastructure with global best practices.
Adenagbe also expressed optimism that the reform would make Nigeria’s capital market more attractive to both domestic and foreign investors by improving transparency, efficiency, and operational resilience.
While the change introduces operational pressure in the short term, market operators believe it positions Nigeria closer to developed markets that have already adopted faster settlement systems as part of broader financial modernization efforts.