By Chukwuma Umeorah
Central Securities Clearing System (CSCS) Plc is considering listing on the Nigerian Exchange (NGX) to strengthen its capital base, increase transparency and boost visibility in the capital market.
The development emerged at its 31st Annual General Meeting (AGM) in Lagos, where the company’s financial results were presented and shareholders tabled key demands for deeper regional integration, stronger governance and improved cost management.
Chairman of CSCS, Temi Popoola, acknowledged the “self-evident benefits” of listing, such as increased funding for expansion, improved visibility, and transparency, but noted that the board is evaluating “several elements and variables,” including prevailing market conditions, regulatory frameworks, and long-term strategic fit.
For 2024 financial year, CSCS, Nigeria’s premier central securities depository, recorded a 37 per cent increase in gross earnings to N26.1 billion, while profit after tax (PAT) rose by 18.7 per cent to N11.95 billion. Its total assets also grew by 22 per cent to N64.43 billion. These strong earnings enabled the company to declare a dividend of N1.76 per share, representing a 17.3 per cent rise from the previous year’s N1.50.
Shareholders approved a total dividend payout of N8.8 billion. While commending the dividend declaration, shareholders demanded more for the current financial year.
“We are striking a balance between delivering shareholder value and investing in growth,” Popoola affirmed, noting that while the company may consider an increase, it must strictly follow its dividend policy. He expressed confidence in CSCS’s financial stability amid inflation and currency volatility.
Shareholders used the AGM as a platform to challenge the board to intensify efforts across four critical areas: pan-African expansion, board governance, cost discipline, and enhanced CSR impact. They lauded the board’s engagement but expressed concerns over issues such as director compensation transparency, diversity, and minority representation.
National Coordinator of the Progressive Shareholders Association of Nigeria (PSAN), Boniface Okezie, questioned the opaque nature of professional fees paid to consultants and auditors, insisting: “We want full disclosure. Consultants must present their reports so that shareholders are aware of the services rendered.” Another shareholder commended the board’s attendance and responsiveness but called for greater gender balance and inclusion of minority voices. The re-election of female directors such as Aisha Oyebode and Bola Adesola as Independent Non-Executive Directors was highlighted as a step in the right direction.
Popoola responded by noting that corporate governance remains a top priority, revealing that the board is reviewing director policies and increasing efforts to ensure inclusive representation. “We are intentional about gender balance and board accountability,” he said.
CSCS’s strategic roadmap for the next three to five years prioritizes regional expansion, aligning with its ambition to become a dominant post-trade infrastructure provider across Africa. Popoola added that the company is actively involved in initiatives such as the African Exchanges Linkage Project (AELP), which aims to integrate trading across African capital markets.
“We are working with other central securities depositories and exchanges across Africa to ensure seamless cross-border operations. This is a top agenda item in our new strategic plan,” Popoola disclosed.
Managing Director/Chief Executive Officer, Haruna Jalo-Waziri, corroborated, describing 2024 as a “transformative year” that set the foundation for CSCS to emerge as “Africa’s most trusted and innovative depository.” Shareholders expressed confidence in the company’s operational capacity and regional readiness.
On the technology front, CSCS revealed heavy investments in digital infrastructure, cybersecurity, and artificial intelligence (AI). Jalo-Waziri explained that the company hosts an annual cybersecurity conference and has expanded its firewall and operating centers to enhance data protection. AI-driven tools are now embedded in business intelligence operations to improve efficiency and decision-making. “We are on the front line in terms of connectivity and data security,” he said, noting that while the costs of software licenses and infrastructure are rising due to forex instability, CSCS is adopting a strict cost-optimization policy to protect profitability.
Shareholders further expressed concerns over inflation-driven operational expenses, particularly the high costs of diesel and imported technology which saw the company’s operational cost surge by 41.3 per cent year-on-year. In response, Jalo-Waziri said the company has launched a comprehensive internal cost review to identify areas where savings can be achieved without compromising service quality. “We are deploying innovative technology to reduce our cost base while maintaining service excellence,” he assured.
On corporate social responsibility (CSR), shareholders called for a diversification of impact areas beyond education. While acknowledging CSCS’s previous philanthropic efforts, they remarked that the existing donation framework “cannot serve as a comprehensive CSR” due to its limited scope. Shareholders advocated for a wider focus that includes healthcare, social welfare, and youth empowerment. The board assured that, going forward, it plans to adopt blockchain-enabled CSR reporting to ensure transparency and alignment with evolving community needs.