Nigeria’s Central Securities Clearing System (CSCS) sweeping overhaul of its 2026 fee structure has sparked wide-ranging reactions across the capital market, with operators and analysts offering differing perspectives on its long-term implications.
The revised pricing framework, which introduces sharp increases across multiple service lines and shifts toward asset-based pricing, is being interpreted as a bold attempt to modernise Nigeria’s post-trade infrastructure and align it with global standards.
CSCS Managing Director and Chief Executive Officer, Mr. Shehu Shantali, said the review primarily affected a select group of previously underpriced services, and in some cases introduced charges for services that were previously offered at no cost.
However, it has also triggered concerns about affordability, investor participation, and the overall balance between institutional efficiency and market inclusiveness. From stockbrokers to custodians and registrars, early reactions suggest a mix of cautious acceptance and strategic concern.
While many acknowledge the rationale behind the changes, particularly considering rising operational costs and the need for technological upgrades, others worry about the timing and potential unintended consequences for an already evolving market.
At the heart of the debate is a fundamental question: can Nigeria’s capital market sustain aggressive pricing reforms while still expanding participation, especially among domestic retail investors who remain critical to long-term growth?
What the fee schedule shows
The updated CSCS fee structure reveals significant increases and structural changes across key services:
- OTC trade fees surged from N15 per million to N500 per million, a 3,233% increase
- Custody fees shifted from a flat N1,300 to 0.03% of transaction value, introducing scalable pricing
- Custodian code creation rose 243%, from N72,800 to N250,000
- Settlement bank onboarding increased 60%, from N15.6 million to N25 million
- Margin account onboarding jumped 300%, from N50,000 to N200,000
- Corporate onboarding fees surged 400%, now at N100,000
- Renewals climbed 156%, reinforcing recurring revenue streams
- Retail-facing services recorded moderate increases across statements, transfers, and account updates
New services such as joint accounts, API monetisation, and premium investor tiers were introduced with remarkable prince levels.
More insights
For many market participants, the fee overhaul signals a decisive shift in how CSCS positions itself within the capital market. Institutional clients—banks, custodians, and large-scale investors—are now clearly at the centre of its revenue strategy.
- This is consistent with global trends, where post-trade infrastructure providers increasingly align pricing with transaction size, asset value, and operational complexity.
- By adopting asset-based pricing, CSCS ensures that its revenue grows in tandem with market expansion, creating a more dynamic and scalable model.
- However, the Nigerian context introduces unique considerations. The market is still developing, with a large base of retail investors who are either inactive or only marginally engaged.
- While institutional players may absorb higher costs without significant disruption, the cumulative effect of fee increases on smaller participants could influence trading behaviour and overall market activity.
- The emphasis on fixed income as a revenue driver shows CSCS is positioning itself to capture greater value from Nigeria’s expanding debt market offering attractive yields.
- The sharp increase in OTC trade fees underscores this strategic focus.
Yet, as the market adjusts to the new regime, stakeholders are closely watching how these changes will interact with broader regulatory and economic dynamics.
CSCS CEO’s comments:
CSCS Chief Executive, Shehu Shantali, offered insights into the fees review, describing it as a measured response to current economic realities, adding that most of the core fees remained unchanged.
- “The recent fee adjustment was a measured response to current economic realities, including inflationary pressures.
- The review primarily affected a select group of previously underpriced services, and in some cases introduced charges for services that were previously offered at no cost.
- Importantly, the majority of our core fees, remain unchanged, reflecting our commitment to maintaining cost stability across key market activities.”
Essentially, the CSCS has rolled out a range of new services aimed at improving investor experience, fostering inclusion, and strengthening market resilience. The new introductions includeinclude but not limited to Joint Accounts, Premium Investor Tiers, API Access, and Expanded Data Services.
Experts weigh-in:
Industry experts have weighed in extensively, offering both support for the reforms and caution about their potential impact.
- According to Blakey Okwudili Ijezie, founder of Okwudili Ijezie & Co., the move by CSCS reflects a broader global shift in how post-trade services are priced.
- Ijezie noted that aligning fees with transaction scale and complexity is a logical step toward ensuring sustainability and operational efficiency.
- “Across global markets, post-trade infrastructure providers are increasingly aligning their pricing models with the scale and complexity of transactions,” Ijezie said, adding that CSCS may be justified in seeking to strengthen its capacity and invest in technology.
- “Nigeria’s market requires a more nuanced approach. Significant increases in transaction costs could discourage retail investors, many of whom are still new to formal financial systems.”
- “Retail investors play a crucial role in deepening market liquidity and promoting financial inclusion. Any policy shift that significantly increases transaction costs risks discouraging participation at the grassroots level,” Ijezie explained.
- “The strength of any financial system is not measured solely by its efficiency, but by the breadth of its participation,” Ijezie stated, stressing the need for inclusive growth.
- Walter Ogogo pointed to potential ripple effects across the market, warning that higher fees could slow transaction volumes, particularly among institutional investors, and may prompt other stakeholders to review their own pricing structures.
- “The SEC may come up with their comments in the interest of the market. Trade groups should also engage with CSCS for possible considerations,” said Dr. Ogogo, the pioneer Registrar, Institute of Capital Market Registrars (ICMR).
Reactions from stockbrokers have been more reserved. One senior broker confirmed awareness of the changes and compliance with the new structure but declined further comment while another simply acknowledged the development without elaboration.
What you should know:
CSCS is a Public Limited Company with a diversified shareholder base, including the Nigerian Exchange Group, some of the largest banks in Nigeria, private equity firms, investment banks and other corporate and individual shareholders.
- It is quoted on NASD (Nigeria’s across-the-counter-securities exchange) where shares of entities yet to be listed on NGX are being traded.
- The new service introductions include but not limited to Joint Accounts, Premium Investor Tiers, API Access, and Expanded Data Services.
- The introduction of Joint Accounts makes it easier for families, business partners, and co-investors to manage and monitor their investments together.
- With Premium Investor Tiers, CSCS is recognizing and rewarding active investors who desire specialized support and added value.
- The newly launched API Access opens new possibilities for financial technology firms, brokers, and market operators to connect directly with CSCS’s systems.
As a central securities depository (CSD), it ensures the safe custody of securities in electronic form, facilitates efficient transfer of ownership, and reduces risks associated with physical certificates. It is a systemically important financial market infrastructure.
