The Central Securities Clearing System (CSCS) Plc has announced that it invested about N1.3 billion in capital expenditure to facilitate Nigeria’s transition from a T+3 to a T+2 settlement cycle, marking one of the most significant upgrades to the country’s post-trade infrastructure in recent years.

The disclosure was made during a press conference held at the Nigerian Exchange Limited (NGX) in Lagos, where senior executives outlined the scale of work undertaken to modernise the clearing and settlement framework.

The new T+2 settlement cycle officially went live on Friday, setting the stage for the first batch of equity trades to be completed under the shortened timeline next week Tuesday.

Managing Director and Chief Executive Officer of CSCS, Haruna Jalo-Waziri, explained that the investment, which represents roughly four per cent of CSCS’s 2024 financial year revenue, was deliberately kept minimal due to the organisation’s long-term, phased approach to upgrading its systems.

According to him, CSCS had been strengthening its capacity over time, ensuring that the eventual migration would be efficient, stable, and cost-effective.

He emphasised that the transition aligns with global best practices and reflects the market’s readiness for faster, more reliable settlement processes.

Jalo-Waziri described the implementation as a major milestone for the Nigerian capital market, reducing settlement risks and improving operational efficiency for brokers, investors, and other market participants.

Looking ahead, he confirmed that the market is already preparing for an even more ambitious shift to a T+1 settlement cycle, scheduled for May 2026.

He stated that the technological groundwork for this next phase has been completed, noting that CSCS is committed to meeting the deadline without delay.

He pointed out that the organisation is confident about the transition path and remains focused on ensuring that Nigeria keeps pace with global settlement standards.

In explaining the technological backbone of the upgrade, Jalo-Waziri highlighted that CSCS deployed its proprietary core software warehouses developed by Tartar, described as the world’s largest provider of post-trade solutions.

He noted that the main software environment, servers, and security architecture are fully operational, providing the resilience and scalability required for a seamless shift to shorter settlement cycles.

He added that the strengthened infrastructure will not only support faster settlement but also enhance market stability, investor confidence, and the overall competitiveness of the Nigerian capital market as it continues to integrate with global financial systems.

CSCS Plc Chairman, Temi Popoola, described the transition as a strategic move designed to strengthen investor confidence, enhance market liquidity, and align Nigeria more firmly with the standards that define world-class financial systems.

According to him, the shift to a shorter settlement cycle underscores the country’s commitment to building a market rooted in efficiency, transparency, and global competitiveness.

Popoola noted that the adoption of T+2 expands the boundaries of what the market can achieve, reinforcing the groundwork for future technological and structural innovations.

He added that the development sends a clear message to domestic investors, international participants, and the global financial community that Nigeria is prepared for the next stage of capital-market advancement.

Earlier, the Director General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, described the successful transition as a strong signal that Nigeria is committed to building a credible, resilient market ecosystem capable of attracting substantial investment.

Represented by the Commissioner of Operations, Mr. Bola Ajomale, he commended the industry committee and market operators for their dedication, coordination, and technical expertise in delivering a milestone that aligns Nigeria with global settlement standards.

He urged all market participants to remain vigilant as the new cycle goes live, emphasising the need for continuous monitoring, strict adherence to operational guidelines, and collective responsibility to ensure the stability and integrity of the market during and after the transition.

Agama also added that sustained collaboration will be critical in preserving investor confidence and advancing the long-term growth of the Nigerian capital market.