CSCS Fee Income Jumps 71% To N20.28bn Amid Market Boom

The Central Securities Clearing System (CSCS) Plc generated N20.28bn from transaction and depository fees in the financial year ended December 31, 2025, underscoring strong growth in market activity and reinforcing its position at the core of Nigeria’s capital market infrastructure.

Details from the company’s 2025 annual financial report show that the figure represents a 70.88 per cent increase from the N11.87bn recorded in 2024. The combined income from transaction and depository services accounted for 87.4 per cent of the group’s total revenue of N23.21bn during the period under review.

A breakdown of the performance indicates that transaction fees remained the primary revenue driver, rising sharply to N15.44bn from N7.91bn in the previous year, reflecting a 95.26 per cent growth. The segment alone contributed 66.52 per cent of total revenue, highlighting increased trading volumes and sustained investor participation in the Nigerian equities market.

Depository fees also recorded steady growth, increasing by 22.26 per cent to N4.85bn in 2025 from N3.96bn in 2024, further supporting the group’s earnings profile.

Transaction fees, typically charged as a percentage of the value of executed trades, remain a fundamental cost component for investors, while depository fees are earned from custodial and settlement services provided by the institution.

Speaking at the company’s 32nd Annual General Meeting, Managing Director and Chief Executive Officer, Mr. Shehu Shantali, said the strong performance was achieved despite a dynamic operating environment.

He noted that the group’s total revenue rose by 66 per cent to N23.21bn, while total operating income reached N28.67bn, demonstrating the scalability of its business model.

According to him, operating profit climbed significantly to N8.71bn, with operating margin expanding to 37.5 per cent from 10.7 per cent recorded in the previous year, reflecting improved cost discipline and operational efficiency.

Profit before tax stood at N13.57bn, while profit after tax closed at N9.90bn. The company also strengthened its balance sheet, with total equity increasing to N43.49bn, a development Shantali said reinforces the institution’s long-term sustainability.

Beyond financial performance, CSCS reported key operational and technological milestones achieved during the year. These include the implementation of a comprehensive internal data integrity initiative aimed at improving the reliability of its systems and processes.

The company also completed an upgrade of its core application, enhancing system capacity and scalability to meet evolving market demands.

A major highlight of the year was the successful transition of Nigeria’s equity settlement cycle from T+3 to T+2, achieved in collaboration with regulators and other market participants. The shift is expected to improve market liquidity, reduce counterparty risk, and align Nigeria’s capital market operations with global standards.

In addition, CSCS expanded its digital ecosystem with the launch of RegConnect 2.0, a Custodian Portal, and a redesigned Brokers Portal, alongside enhanced API integration capabilities to support market participants.

At the regional level, the company hosted the annual conference of the Africa and Middle East Depositories Association in Lagos, bringing together stakeholders to discuss innovation and integration across capital markets.

Looking ahead, CSCS said it is entering a new phase of growth following the conclusion of its 2021–2025 strategic plan. The company plans to focus on digital transformation, automation of post-trade processes, improved data analytics, enhanced cybersecurity, and deeper system integration across the financial ecosystem.

It also indicated plans to work with regulators and stakeholders towards achieving a T+1 settlement cycle in the future, further improving market efficiency and reducing settlement risks.

The company added that evolving regulatory requirements, including revised capital thresholds introduced by the Securities and Exchange Commission, are expected to strengthen the overall resilience and governance of market operators, ultimately boosting investor confidence.

CSCS reiterated its commitment to investing in talent development, innovation, and institutional capacity as it continues to support the growth and stability of Nigeria’s capital market.