From Waiting Days to Hours: Nigeria Eyes 24-Hour Stock Market Cycle

Nigeria 24-hour stock market cycle — biznalytiq

Table of Contents

Introduction: Nigeria’s Market at a Turning Point

In November 2025, the Central Securities Clearing System Plc (CSCS) officially reduced Nigeria’s equities settlement cycle from the long-standing T+3 (trade date plus three business days) to T+2 (trade date plus two business days) (CSCS, 2025).

This is not just a procedural adjustment. It is a structural upgrade poised to reshape liquidity, investor confidence, and Nigeria’s global capital market credibility. But how will this affect investors, institutions, and market dynamics in practice?

Using 2025 NGX and CSCS data, we explore trading behavior, liquidity trends, and the potential impact of a future 24-hour (T+1) settlement cycle.

2025 Market Data Snapshot: Trading Volumes and Values

NGX Weekly Trading Data (2025)

Week Ending	Shares Traded	Value of Trades (₦)	Notes / Source
Jan 17, 2025	2.252 bn	58.831 bn	NGX Weekly Report
Mar 7, 2025	1.818 bn	47.226 bn	NGX Weekly Report
Apr 4, 2025 (short week)	1.183 bn	28.868 bn	Holiday effect
Apr 25, 2025	1.854 bn	56.025 bn	Market recovery
May 31, 2025	3.794 bn	119.394 bn	High liquidity week
Sep 19, 2025	2.74 bn	85.20 bn	Fall trading
Oct 10, 2025	2.28 bn	90.28 bn	Mid-quarter activity
Nov 17–21, 2025	2.66 bn	106.26 bn	Pre-T+2 go-live

CSCS Overall Transactions (May–Aug 2025)

₦2.112 trillion in securities across 95.66 billion units, over 2 million deals.
138% increase vs the same period in 2024 (CSCS, 2025).

Insight: The market is active, with weeks showing high liquidity. CSCS infrastructure is heavily used, suggesting readiness for faster settlement cycles.

Why Faster Settlement Matters

Boosting Liquidity

Shorter cycles provide faster access to funds, allowing investors to reinvest and rebalance portfolios quickly.
Institutional investors benefit from higher capital efficiency, particularly during high-volume periods like May 2025.

Reducing Risk

Fewer days between trade and settlement reduce counterparty and operational risks.
CSCS’s proven ability to process trillions of naira in transactions indicates that the infrastructure can handle higher efficiency without compromising safety.

Attracting Investors

Domestic investors enjoy faster liquidity and portfolio flexibility.
Foreign investors encounter market conditions closer to global standards, enhancing Nigeria’s attractiveness.
Reliable settlement improves market credibility, encouraging corporate participation and new listings.

Interpreting the 2025 Data

Strengths

High activity: Multiple weeks exceed 2 billion shares traded.
Liquidity peaks: May 2025 saw 3.794 billion shares traded.
Robust infrastructure: CSCS handled massive transaction volumes successfully.

Limitations

Weekly volatility remains high.
Incomplete data: Not all weeks/months are covered publicly.
Mixed transaction types: CSCS data includes equities, bonds, and OTC instruments.
Early stage reform: T+2 benefits are not yet fully measurable as implementation occurred in late November 2025.

Looking Ahead: What to Monitor in 2026–2027

Key indicators as Nigeria transitions to T+2 and eventually T+1:

Trading volumes & stability: Are liquidity trends consistent?
Deal frequency vs average deal value: Indicates depth and participation.
CSCS settlement performance: Track delays, reversals, and failure rates.
Foreign vs domestic investor participation: Measures confidence.
New listings, IPOs, and corporate actions: Reflects ecosystem growth.
Macroeconomic context: FX, inflation, and interest rates remain pivotal.

Potential Market Scenarios

Steady Growth: Turnover stabilizes, settlement efficiency improves, liquidity gradually increases.
Volatile Flip-Flop: Inconsistent market activity limits gains despite settlement reform.
Breakout Success: Reliable settlement boosts investor confidence, foreign inflows increase, and the market deepens.

Strategic Implications

Liquidity enhancement: Capital moves faster.
Risk reduction: Shorter cycles lower counterparty and settlement risk.
Market credibility: Efficient post-trade operations build trust.
Global alignment: T+2/T+1 adoption reduces barriers for international investment.
Foundation for growth: Combined with governance reforms and macro stability, market depth and performance could improve significantly.

Conclusion: From Potential to Performance

2025 data reflects an active but volatile market. T+2 settlement is a milestone that enhances liquidity, reduces risk, and strengthens investor confidence.

Achieving a 24-hour T+1 cycle will require sustained effort: stable liquidity, robust infrastructure, and consistent regulatory oversight.

For investors, regulators, and analysts: monitoring trading data, settlement efficiency, and market participation in the coming months is essential. The real transformation is only beginning.