CSCS: Reshaping Nigeria’s Capital Market Infrastructure for Development
Goddy Egene writes on the role of the Central Securities Clearing Systems Plc in the transition to T+1 settlement cycle in that is capable of making the Nigeria’s capital market
Central Securities Clearing Systems Plc (CSCS) is playing a pivotal role in transforming Nigeria's capital market infrastructure to facilitate a T+1 settlement cycle. This reform, set to roll out on June 1, 2026, follows a successful introduction of the T+2 cycle on November 28, 2025. The T+1 settlement will reduce the standard settlement period from two business days to just one, accelerating transaction processing and reducing the period in which capital remains tied up.
CSCS has collaborated closely with the Securities and Exchange Commission (SEC), market exchanges, trade associations, custodians, settlement banks, broker-dealers, and other market operators to develop and implement a comprehensive market-wide transition plan. This collaboration involved stakeholder consultations, sensitization campaigns, operational-readiness assessments, system upgrades, system-wide testing, investor education, and implementation monitoring.
CSCS Managing Director/CEO, Mr. Shehu Yahaya Shantali, emphasized that the transition from a T+3 to a T+1 settlement cycle was not merely about shaving two days off the cycle. Instead, it necessitated a comprehensive overhaul of the market infrastructure, processes, and operational capacity. CSCS strengthened its technological infrastructure and resilience to ensure that speed did not compromise reliability.
Similarly, CSCS Divisional Head, Business Services and Client Experience, Onome Komolafe, highlighted that the T+1 settlement cycle has significantly altered market dynamics, raising the bar for timeliness, accuracy, responsiveness, and coordination. The shorter settlement window has made operational readiness more critical than ever, necessitating enhanced readiness, coordination, and process simplification across the market.
The benefits of the shorter settlement cycle include structural advantages such as reduced capital tie-up, accelerated transaction processing, and an overall more efficient and globally competitive capital market. Faster settlement times also underscore CSCS's capacity to adapt and evolve its infrastructure to meet the changing needs and sophistication of the market, reinforcing its commitment to continuous improvement and seamless service delivery.
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