Nigeria’s Central Securities Clearing System (CSCS) has explained the rationale behind its sweeping review of services and fees, stating that the move is part of a broader strategy to modernise market infrastructure, enhance service delivery, and support long-term capital market growth.
The Managing Director and Chief Executive Officer, Mr. Shehu Shantali, disclosed in a response to Nairametrics’ inquiry that the new packages are aimed at improving investor experience through better access to data, faster transactions, and enhanced service reliability.
The review introduces new service categories alongside adjustments to existing charges, reflecting a shift toward value-based pricing and a stronger focus on institutional clients and high-volume transactions.
According to the CEO, the changes are designed to align its operations with global best practices while ensuring sustainability in a rapidly evolving financial ecosystem, adding that the organisation remains committed to building a seamless and secure post-trade environment.
What the CSCS is saying:
CSCS boss 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, stressing most of CSCS’ core fees remain unchanged, maintaining cost stability across key market activities.
- “The new services are designed to make things easier for investors and to help stakeholders access better data, faster transactions, and deeper value across the ecosystem,” the CEO stated.
- Joint Accounts, he explained, enables families, partners, and co-investors to jointly manage portfolios, improving transparency and collaboration.
- Premium Investor Tiers: Offer tailored services and enhanced engagement for active investors seeking more personalised support.
- API Access: Allows fintechs, brokers, and institutions to connect directly to CSCS systems, enabling automation and faster service delivery.
- Expanded Data Services: Provide deeper market insights and improved access to information for better decision-making.
- Legacy services retained: Existing services remain available, now enhanced with improved efficiency and broader functionality.
- Technology-driven approach: Focus on automation, speed, and reliability across all service lines.
This range of new services, the CEO explained, is designed to make things easier for investors and to help stakeholders access better data, faster transactions, and deeper value across the ecosystem.
However, capital market experts have weighed in extensively, offering both support for the sweeping fees review and caution about the potential impacts on the capital market ecosystem, insisting that such significant increases in transaction costs could discourage retail investors, many of whom are still new to formal financial systems.
More insights:
Beyond the introduction of new services, the fee review also reflects significant structural changes across CSCS’s pricing model. One of the most notable shifts is the transition from flat fees to value-based pricing, particularly in custody-related services, where charges moved from a fixed N1,300 to 0.03% of asset value.
- Institutional services saw some of the largest increases, with corporate onboarding rising by 400% and margin account onboarding by 300%, highlighting a deliberate push toward high-value clients.
- Similarly, fixed income services emerged as a major revenue focus, with OTC trade fees jumping by over 3,000%, signalling the growing importance of Nigeria’s debt market.
- Retail-facing services were also adjusted, though more moderately.
- Fees for account updates, transaction history, and reporting services recorded increases ranging from 33% to 200%.
- While individually small, these changes reflect a broader strategy to generate volume-based revenue from a growing investor base.
Importantly, the introduction of API access and data services underscores CSCS’s ambition to position itself at the centre of financial market innovation, enabling digital integration and supporting the expansion of fintech solutions within the capital market.
What you should know
The introduction of new service packages marks a significant step in CSCS’s evolution from a traditional clearing house into a technology-driven market infrastructure provider.
- By combining innovative offerings with a restructured pricing model, the organisation is positioning itself to support a more dynamic and efficient capital market.
- These changes are particularly important as Nigeria seeks to deepen investor participation and attract both domestic and foreign capital.
- The new packages not only enhance user experience but also create opportunities for collaboration, innovation, and growth across the ecosystem.
The revised fees reflect the cost of enhanced services and infrastructure; the broader objective is to build a resilient, inclusive, and future-ready capital market that delivers value to all stakeholders.
