The Central Securities Clearing System (CSCS) Plc has set November 28 to transition to a T+2 settlement cycle. The new settlement system does more than shorten settlement cycles; it enhances liquidity, boosts efficiency, and builds investor confidence, according to Haruna Jalo-Waziri, Managing Director/CEO, Central Securities Clearing System, who provides answers to media questions ahead of the new cycle, writes Iheanyi Nwachukwu.
Central Securities Clearing System (CSCS) Plc is set to transition to a T+2 settlement cycle on November 28, 2025, joining global financial giants. What does this milestone mean for Nigeria’s capital market, and why is it so significant at this time?
The transition to a T+2 settlement cycle marks a defining milestone in the evolution of Nigeria’s capital market. It’s a clear signal that our market is advancing – becoming faster, more efficient, and globally competitive. For us at CSCS, leading this change is about more than just shortening settlement time; it’s about improving liquidity, managing more effectively, and deepening investor confidence. The timing couldn’t be more important – as technology advances and more investors increasingly look toward emerging markets, Nigeria must continue to demonstrate that we’re ready to play on the global stage.
Pan-African Leadership with Zimbabwe’s Victoria Falls Stock Exchange (VFEX) and Zimbabwe Stock Exchange (ZSE) have commenced T+2 ahead of Nigeria. How do you view Nigeria’s role among those leading the settlement reform agenda across Africa?
I think it’s fantastic to see other African markets leading the charge. We commend our peers at the Victoria Falls Stock Exchange (VFEX) and Zimbabwe Stock Exchange (ZSE) for pioneering the T+2 model in Africa. That said, Nigeria’s transition carries broader implications because of the size, depth, and diversity of our market. CSCS has always been at the forefront of post-trade innovation, and this move reinforces Nigeria’s leadership in driving harmonization and integration across African markets. Ultimately, our vision extends beyond Nigeria – we aim to foster cross-border connectivity that positions Africa as a more unified and investable ecosystem.
The move from T+3 to T+2 requires coordinated efforts across the ecosystem. What steps has CSCS taken to ensure that market participants, including brokers, custodians, and fund managers, are fully prepared for this transition?
It absolutely does. This kind of reform can’t happen in isolation. Over the past year, we’ve worked hand-in-hand with brokers, custodians, fund managers, registrars, and settlement banks. We’ve conducted several readiness assessments, held simulation exercises, and issued detailed checklists to guide participants. We’ve also focused on training and change management, helping market operators reimagine their operational workflows and adopt more automated, real-time processes. It’s truly been a collective effort across the ecosystem.
CSCS has made major investments in technology in recent years. Can you walk us through some of the critical systems or platforms that are enabling this shift, particularly in terms of risk reduction and operational speed?
That’s right. We’ve been very intentional with our technology investments. We upgraded our core application to handle high-speed, low-latency transactions with advanced risk management features. We have also rolled out self-service portals for some of our market participants – RegConnect 2.0, Custodian Portal, Brokers Portals, and we’re concluding work on others to facilitate seamless information exchange with Exchanges and Regulators. In addition, our upgraded Market Infrastructure Network ensures data integrity, interoperability, and resilience. These platforms together enable us to process trades more efficiently, reduce settlement risk, and strengthen market stability — all essential to enabling T+2 and, eventually, T+1 settlement.
Your automation capabilities now support high-volume processing with minimal human intervention. How has this transformation impacted market efficiency, and what are the measurable outcomes so far?
It’s been transformational. Today, about 95 percent of our post-trade processes run automatically with minimal manual input. That means faster settlements, fewer exceptions, and greater accuracy across multiple asset classes. We’ve seen efficiency improve by over 30 percent, and error rates have dropped significantly. But beyond the numbers, what matters most is the confidence and transparency this brings to the market. Investors can now rely on a smoother, more predictable settlement experience.
You recently launched a new Custodian Portal and RegConnect Version 2 earlier this year. What feedback have you received from users, and how are these tools improving the post-trade experience in real-time?
The feedback has been very encouraging. Both tools were designed to simplify how custodians, brokers, and regulators interact in real time. Participants tell us that reconciliation is faster, compliance is easier, and transparency has improved significantly. We’re continuously refining these platforms based on user feedback because our goal is to make post-trade interactions as seamless and intuitive as possible.
The introduction of the 7270# USSD code is a big step for retail investors, especially those without internet access. What has been the uptake so far, and how does CSCS plan to build on this for broader financial inclusion?
We’re really proud of that initiative. The 7270# code was developed to give every investor, even those without smartphones or internet access, a simple way to verify their holdings and access market information. Uptake has been strong, especially among retail investors outside major cities. It’s part of our broader commitment to financial inclusion. We’re now exploring additional features such as corporate action alerts and portfolio updates to deepen engagement through this channel.
Some global markets are already moving to T+1 and even exploring T+0. Is CSCS actively working toward these faster settlement cycles? What would it take for Nigeria to make that leap?
Absolutely, that’s where the global trend is heading. While T+2 is our immediate milestone, we’re already working towards T+1 next year and studying what it would take to achieve near-instantaneous settlement in the future. It’s not just a technology question – it involves liquidity, regulation, and overall ecosystem readiness. With the Central Bank’s progress on real-time payment systems and our ongoing infrastructure upgrades, I’m confident Nigeria will be well-positioned to move in that direction sooner rather than later.
What are the biggest challenges CSCS anticipates with the T+2 rollout, particularly around counterparty and liquidity risks, and how is the organisation working to mitigate them?
Every major reform comes with challenges, and the key ones here are counterparty and liquidity risks. To mitigate these, we’ve strengthened our risk framework: reviewing our participant onboarding process, deploying real-time monitoring tools, and enhancing our risk models. We’re also working with settlement banks on fail-safe liquidity arrangements to ensure adequate funding at every stage of the settlement process. The focus is on maintaining market integrity while minimising disruption.
Infrastructure upgrades can be expensive, especially for smaller players.
What kind of support, guidance, or partnerships is CSCS offering to help the broader market comply with the upcoming changes?
That’s a very valid concern. We recognise that technology and process upgrades can be challenging for smaller intermediaries. That’s why we’ve extended the use of our Security Operations Centre (SOC) to some market participants, giving them access to shared infrastructure and cybersecurity support. We’re also exploring a Market Readiness Support Desk, as part of our onboarding process, to help participants test their systems and integrate seamlessly with ours. The idea is to make sure everyone, large or small, can participate effectively in the new settlement environment.
How crucial has the collaboration with the Securities and Exchange Commission (SEC) and other regulatory bodies been in advancing this settlement reform?
The SEC has been a strategic partner from day one, providing strong leadership and coordination. Their guidance ensures that all stakeholders are aligned and that the transition happens in a transparent, orderly manner. We’ve also had excellent collaboration with the Exchanges, the Central Bank, and other market institutions. Settlement reform is an ecosystem-wide initiative, and this kind of collaboration has been key to our progress so far.
Looking ahead to 2026 and beyond, what’s your vision for CSCS and its role in deepening capital market innovation, not just in Nigeria, but across Africa?
Our vision is to make CSCS the most trusted and innovative post-trade institution in Africa. Beyond settlement efficiency, we’re expanding into data services, digital asset infrastructure, and regional market linkages.
By 2026 and beyond, we see CSCS as a true platform, connecting Nigeria’s capital market to global investors and enabling cross-border capital flows. Ultimately, our mission is not just to clear trades but to clear the path for growth, for our market, our economy, and our continent.
