TECH TUESDAY – Nigeria’s Central Securities Clearing System Plc (CSCS) has been upgrading its core technology system ahead of this week’s upgrade of the market to T+2 settlement. And the Securities and Exchange Commission, Nigeria (SECN) says the plan is to move to T+1 next year “in alignment with trends in developed markets, and ultimately target T+0”.
The move to T+2 for equities trading from this Friday 28 Nov will transform Nigeria’s market and align it with global standards. Currently equities trade on T+3 (see our story).
In October, CSCS announced the completion of a modernized its core operating systems, working with global IT firms. It has been using the Tata Consultancy Services BaNCS platform since 2015. According to news reports, the upgrade is based on IBM Power 10 Series and enhances the speed, scalability, integration and system security of the CSCS – and it provides a platform for innovation. Power10 processors are built with better memory and input/output architectures, to handle artificial intelligence (AI) workloads.
Bola Ajomale, Executive Commissioner (Operations) of SECN earlier told a 10 September webinar organized by CSCS (press release): “The Commission’s plan is to move to a T+1 cycle next year, in alignment with trends in developed markets, and ultimately target T+0. We urge all market participants to prepare for this shift and adequately engage their clients. This initiative is a critical component of our broader capital market reforms aimed at enhancing global competitiveness.”
Temi Popoola, Chairman of the CSCS, said at a webinar on 15 October that the organization had invested heavily to be ready (see press release): “Our systems have undergone extensive stress testing under high transaction volumes and extreme conditions. We are confident in our capacity to fully support T+2, underpinned by robust redundancy and fallback mechanisms.”
Haruna Jalo-Waziri, MD/CEO of CSCS, said in an earlier press release: “The transition to T+2 is a significant milestone for the Nigerian capital market and a testament to the collaborative spirit of our ecosystem. This shift not only brings our market in line with global best practices but also deepens efficiency, resilience, and investor trust. CSCS is proud to coordinate this journey with the support of regulators, exchanges, and market stakeholders.”
Jude Chiemeka, Managing/Director CEO, Nigerian Exchange Limited (NGX) said the NGX was ready in terms of infrastructure and product offerings. The NGX had undertaken market-wide simulation exercises, proactive communication strategies and set up dedicated support systems to facilitate the changeover.
Akin Akeredolu-Ale, Managing Director/CEO, Lagos Commodities and Futures Exchange (LCFE) stressed the efforts of LCFE on regulatory alignment, onboarding facilitation and stakeholder education. Chinwe Ekeh, Head of Operations & IT at NASD Plc, spoke of the system testing, capacity building and a sound funding strategy so that unlisted securities traded would clear under T+2.
Speaking on 27 October about the systems upgrade, according to Market Forces Africa website, Jalo-Waziri said it was a pivotal moment in the company’s digital transformation agenda:
“This strategic upgrade reflects our unwavering commitment to innovation and operational excellence. Partnering with global technology leaders like IBM and TCS ensures that we continue to deliver world-class post-trade services that meet the evolving needs of Nigeria’s capital market and its participants.”
In the Punch Nigeria news report “At CSCS, technology is not just an enabler, it is at the heart of our value proposition. This upgrade reinforces market confidence, enhances efficiency, and paves the way for new, investor-centric solutions that will shape the future of Nigeria’s capital market.”
According to the report, CSCS said: “The new upgrade aligns with CSCS’s long-term vision of enabling a seamless, secure, and efficient marketplace, while delivering enhanced value to stakeholders. The improved infrastructure will support faster transaction processing, better data analytics, and enhanced operational resilience, further positioning CSCS among Africa’s leading post-trade service providers.
(Photo: Haruna Jalo-Waziri, Managing Director and Chief Executive Officer of CSCS, from CSCS website)