The Chairman of the Association of Securities Dealing Houses of Nigeria, Sehinde Adenagbe, has hailed the introduction of the T+1 settlement cycle by CSCS Plc as a landmark reform for Nigeria’s capital market, saying it will improve operational efficiency, lower settlement risks, and strengthen investor confidence.

Commenting on the new settlement regime, Adenagbe said the shift to T+1 represents a major step forward in the development of the country’s securities market.

He noted that the accelerated settlement timeline would require stockbroking firms to adjust their operations and processes to meet the demands of a faster and more efficient trading environment.

Adenagbe said the initiative will significantly reshape trade processing operations across brokerage firms, increasing the need for enhanced operational efficiency, effective liquidity management, and the adoption of technology-driven systems to support faster settlement timelines.

“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.

Adenagbe said one of the major advantages of the T+1 settlement cycle is the significant reduction in counterparty and settlement risks, as trades will now be concluded within one business day of execution. He noted that the faster settlement timeline would enhance investor confidence by accelerating the transfer of cash and securities, thereby improving overall market liquidity and efficiency.

While acknowledging the long-term benefits of the initiative, the ASHON chairman noted that brokers will have to adjust their liquidity management approaches to cope with the tighter settlement timeline introduced by the new regime.

“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.

He commended the Securities and Exchange Commission for approving the transition, as well as the board and management of CSCS Plc for spearheading the reform, describing it as a strategic move toward aligning Nigeria’s capital market infrastructure with global best practices.