ASHON Endorses CSCS T+1 Settlement Cycle for Nigeria

The Association of Securities Dealers of Nigeria (ASHON) has expressed support for the Central Securities Clearing System (CSCS) T+1 settlement cycle, which is designed to transform Nigeria's capital market. Chairman Adenagb described the newly introduced T+1 settlement cycle as a significant milestone in the evolution of Nigeria's securities market.

This change is expected to enhance market efficiency, reduce settlement risks, and boost investor confidence. The transition to T+1 settlement will require stockbrokers to adapt quickly to a faster settlement environment, fundamentally changing trade processes across brokerage firms.

Adenagb emphasized the need for brokers to manage liquidity effectively to cope with the shorter settlement window, which will ultimately lead to lower settlement risks and improved market confidence. Onukwu expressed confidence that the T+1 settlement cycle will attract both domestic and international investors, enhancing overall market resilience.

The implementation of this cycle will reduce the settlement period for securities transactions to two business days, marking a significant post-trade reform in Nigeria's capital market.