The capital market in Nigeria has officially commenced a shorter trade settlement cycle, in a move aimed at improving efficiency, liquidity, and investor confidence.

Market operators said the new settlement structure is designed to reduce the time it takes for transactions to be completed, allowing investors to receive funds and securities faster than under the previous system.

The change aligns Nigeria’s market practices with global standards, particularly those adopted in more advanced financial markets, where shorter settlement periods help reduce counterparty risk.

Financial regulators explained that the reform is part of broader efforts to modernize the capital market, attract foreign investment, and enhance trading activity.

Stakeholders in the financial sector have welcomed the development, noting that faster settlement cycles could improve market turnover and reduce operational bottlenecks.

However, experts also emphasize the need for strong technological infrastructure and compliance systems to ensure smooth implementation without disruptions.

The reform is expected to strengthen investor confidence and support long-term growth in Nigeria’s financial markets.