CSCS slashes share restriction fees by 50% to attract more investors

The Central Securities Clearing System Plc (CSCS) has reduced lien fees for retail investors by 50 per cent, from 0.25 per cent to 0.125 per cent, as part of a review of selected charges aimed at lowering the cost of participation in Nigeria’s capital market.

The clearing and settlement infrastructure also removed charges for qualifying transfers between immediate family members, cutting the nominal transfer fee from 0.3 per cent to zero. Under the revised pricing framework, CSCS has equally scrapped broker code creation and renewal fees, as well as eligibility fees payable by brokers across the exchanges serviced by the company.

CSCS said the changes were intended to reduce transaction costs for investors and market intermediaries, while supporting greater retail participation and the development of technology-driven solutions within the market.

Commenting on the review, the Managing Director/Chief Executive Officer of CSCS, Shehu Yahaya Shantali, said, “As Nigeria’s capital market continues to grow and evolve, we believe its infrastructure must continually respond to the needs of investors and market participants. This review is about identifying areas where we can reduce friction, improve accessibility and support greater participation, while continuing to provide the secure, resilient and efficient infrastructure on which the market depends.”

Shantali added that the fee review formed part of the company’s broader efforts to support a deeper and more inclusive capital market. “We see this as part of our broader responsibility to support the development of a deeper, more inclusive and innovative Nigerian capital market.

We will continue to invest in our technology and capabilities while working closely with our stakeholders to ensure that CSCS remains responsive to the changing needs of the market,” he said.

The revised charges affect selected services provided by CSCS, which operates as the central securities depository for Nigeria’s capital market and provides depository, clearing and settlement services.

The company said the reductions and waivers were also aimed at creating a more supportive environment for brokers, fintech companies and other market participants developing solutions to expand access to the capital market.

CSCS has continued to invest in technology, cybersecurity, operational resilience and service innovation as part of efforts to improve post-trade services. It provides depository services for equities, commercial papers, corporate bonds, sub-national bonds, selected sovereign bonds, exchange-traded funds, real estate investment trusts, mutual funds and commodities.

The revised pricing comes as the Nigerian capital market continues to implement measures aimed at improving market access, reducing transaction costs and increasing participation by retail and institutional investors.