CSCS slashes lien fees by 50% to encourage retail investor borrowing

Central Securities Clearing System Plc (CSCS) has revised pricing across selected services as part of ongoing efforts to reduce transaction friction, encourage greater retail investor participation and support innovation and liquidity across the Nigerian capital market.

Under the revised pricing framework: lien fees for retail investors have been reduced by 50 percent, from 0.25 percent to 0.125 percent. CSCS offers lien services which allow investors to use their securities, such as shares and assets in the CSCS Plc Depository, as collateral for loans.

Also, nominal transfer fees for qualifying transfers between immediate family members have been reduced from 0.3 percent to zero; while broker code creation and renewal fees have been removed; and eligibility fees payable by brokers across the exchanges serviced by CSCS have been removed.

The revised framework introduces targeted reductions and the removal of selected charges for investors and market intermediaries, reflecting CSCS’s commitment to improving market accessibility and supporting a more efficient and inclusive capital market ecosystem.

The changes are designed to lower the cost of participation for investors and market operators, while creating a more supportive environment for brokers, FinTechs and other participants developing solutions that broaden access to Nigeria’s capital market.

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Shehu Yahaya Shantali, managing director/chief executive officer of CSCS Plc 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 further stated: “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.”

As a critical financial market infrastructure, CSCS provides depository, clearing and settlement services that underpin activities across Nigeria’s capital market. The organisation continues to invest in technology, cybersecurity, operational resilience and service innovation to strengthen the efficiency and reliability of Nigeria’s post-trade ecosystem.

The revised pricing forms part of a broader focus by CSCS on enhancing the experience of investors and market participants, supporting greater retail participation, enabling innovation across the ecosystem and contributing to the continued development of Nigeria’s capital market.