Central Securities Clearing System Plc

What Central Securities Clearing System Plc does

Central Securities Clearing System Plc (CSCS) is Nigeria's sole SEC-licensed Central Securities Depository, providing clearing, settlement, and depository services for the Nigerian capital market since commencing operations in 1997. The company operates as regulated Financial Market Infrastructure (FMI) processing equities, treasury bills, bonds, commodities, and funds traded across NGX, NASD, and LCFE exchanges, holding N23.0 trillion in depository assets. CSCS is publicly listed on the NASD OTC Exchange (ticker: SDCSCSPLC) with diversified ownership spanning NGX Group, major Nigerian banks, FMDQ Holdings (which acquired 1.08B shares in 2023), and private equity firm Verod Capital.

The platform runs proprietary CSD infrastructure including biometric investor verification, a 300TB scalable disaster recovery system, electronic document management services (EDMS), and a comprehensive API layer (Account Opening, Single Portfolio View, Account Validation, Detachment) that now serves fintech brokers such as Chaka and Bamboo. CSCS issues Legal Entity Identifiers (LEI) and ISIN codes nationally, manages securities collateral through LIEN services, and has driven structural reforms including full dematerialization of share certificates (2005), the T+2 settlement cycle transition (November 2025), with T+1 scheduled for June 2026.

Revenue is generated through a layered model: per-transaction fees of 0.2-0.3% on trades (plus 7.5% VAT), tiered annual subscriptions (N5,000-N78,400), collateral management fees (0.25% on pledged securities), API integration and subscription fees, custodian and settlement bank participation fees (up to N25M onboarding), and substantial proprietary investment income (N7.44B in FY2020, +61.4% YoY). FY2020 total income reached N12.09B (+31.3% YoY) with N6.93B profit after tax and 20.3% ROAE; the 2024 financial year dividend totaled N8.8B (+17.3% YoY). The company holds ISO/IEC 27001:2022 and ISO 22301:2019 certifications and has been assigned a Thomas Murray A+ rating, the highest for any CSD in Sub-Saharan Africa.

Name

Central Securities Clearing System Plc

Legal name

Central Securities Clearing System Plc

Website

https://cscs.ng

Company type

Public

Founded year

1992

Operating status

Operating

Headcount range

101–250 employees

Short description

Central Securities Clearing System Plc (CSCS) is Nigeria's sole SEC-licensed Central Securities Depository, providing clearing, settlement, and depository services for equities, bonds, and commodities traded across NGX, NASD, and LCFE exchanges.

Ownership category

akta.pro rank

Product category

Central Securities Depository

NAICS

Securities and Commodity Exchanges (523210)

SIC

Finance Services (6199)

akta.pro primary industry

National CSDs & Domestic Settlement Systems (FSAFAGAA)

akta.pro secondary industries

Central Securities Depository (CSD) & Securities Settlement Services (FSAAAOAD), Central Securities Depositories (CSDs) & Settlement Systems (FSACAHAA), Central Securities Depository (CSD) & ICSD SFT Services (FSACAIAL)

Keywords

• Central securities depository
• Clearing and settlement services
• Financial market infrastructure
• Securities depository services
• Legal entity identifier

Headquarters

HQ city

Lagos

HQ country

Nigeria

HQ region

Africa

Offices3 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Technology or R&D, Personnel, Infrastructure, Operations, Marketing or Sales

Revenue model

1. Transaction Fees: CSCS charges 0.3% on sales + 7.5% VAT for NGX trades, 0.2% on sales/buy + 7.5% VAT for NASD and LCFE trades. These fees are charged per transaction and constitute the primary revenue stream tied to market trading activity.
2. Online Subscription Services: Annual subscription fees for various account types including Individual Investor (₦5,000 + 7.5% VAT), Corporate Investor (₦20,000-₦78,400 + 7.5% VAT based on tier), Special Accounts (₦5,000-₦20,000 + 7.5% VAT), and Stockbroking firms portfolio view services (₦78,400 + 7.5% VAT).
3. Depository and Registrar Services: Fees for services including listing fees (0.0075% of market capitalization), depository fees (0.0125% of market capitalization annually), private placement (0.0075% of total value), scrip dividend (0.0125%), tender offer (0.3%), right issue (0.0075%), e-lodgment (₦5,600), and e-merger of securities (0.0075% of value).
4. Collateral Management Services: 0.25% of total value of security (with ₦20,000 minimum) per annum for equity and bond collateral onboarding and renewal.
5. API Services: Account Opening Service integration (₦280,000 one-off), Single Portfolio View integration (₦280,000 one-off) and subscription (₦140 per month). Regular account API integration at ₦210,000 one-off with additional integration at ₦35,000.
6. Investment Income: CSCS generates investment income from proprietary investment portfolio, growing 61.4% YoY to N7.44 billion in 2020FY. This includes returns on invested capital and market positioning.

Pricing tiers

Go-to-market motion3 records

Distribution channels7 records

Marketing channels8 records

Core offering

Central Securities Clearing System Plc (CSCS) operates as Nigeria's sole SEC-licensed Central Securities Depository (CSD), providing post-trade financial market infrastructure including clearing, settlement, and depository services for equities, treasury bills, bonds, commodities, and funds traded on NGX, NASD, and LCFE exchanges. The company also issues Legal Entity Identifiers (LEI), ISIN codes, and offers ancillary services such as LIEN collateral management, Electronic Document Management (EDMS), and API-based portfolio access for institutional and retail market participants.

Product overview

CSCS is Nigeria's premier Central Securities Depository (CSD) providing a comprehensive financial market infrastructure platform. The core offering consists of depository services for safekeeping securities, clearing and settlement services (currently operating T+2 settlement with T+1 planned for June 2026), Legal Entity Identifier services, and ISIN issuance. These core services are supported by modular add-on offerings including Special Accounts (Individual, Family, Corporate, Margin), LIEN Services for securities collateral management, Electronic Document Management System (EDMS) for secure document storage, and the DMO Portal for government bond subscriptions. Digital access is provided through the Online Portal/Portfolio View, Mobile App, AI-powered Chatbot, and Data Exchange Platform with comprehensive API infrastructure. The platform also offers a Whistleblowing portal and Ombudsman services for dispute resolution.

Differentiator

Problem solved

Functional benefit

Products and services

• Depository Services Centralized safekeeping, transfer, and management of securities including equities, bonds, funds and commodities for investors and market participants in the Nigerian capital market.
• Clearing and Settlement Services Post-trade clearing and settlement of capital and money market securities across NGX, NASD, and LCFE exchanges, currently on a T+2 settlement cycle with reduced counterparty risk.
• Legal Entity Identifier (LEI) Services Issuance and management of Legal Entity Identifier codes for legal entities participating in Nigerian financial markets to support regulatory compliance and counterparty identification.
• ISIN Issuance Issuance of International Securities Identification Numbers and ticker symbol creation for all asset classes including equities, commercial papers, corporate bonds, and government securities in the Nigerian capital market.
• LIEN Services Collateral management service allowing investors to pledge securities as loan collateral with financial institutions, with CSCS managing pledged securities and enabling realization within 4 working days of default.
• Electronic Document Management System (EDMS) Digital document management solution providing centralized secure storage, paper conversion, indexing, hosting, and 300 terabyte disaster recovery for compliance and workflow documentation.
• Special Accounts Specialized segregated CSCS account types including Individual, Family, Corporate, Joint Corporate, Joint Individual, and Margin accounts with dedicated onboarding and renewal fee structures.
• API Services (Data Exchange Platform) Programmatic API integration for account opening, single portfolio view, account validation, detachment, and STP (Straight-Through Processing) post-trade automation for stockbrokers, custodians, and fintechs.

Quantifiable outcome

• Depository assets grew 6.1% to N23.0 trillion reflecting investor confidence in CSCS infrastructure
• +3 more outcomes

Named customers12 records

Segments7 records

Ideal customer profiles6 records

Technology focussed Yes

API detail

Has API

Yes

API docs

API detail

Core technology

AI maturity

App detail

AI capability2 records

Feature7 records

Partnerships

Eight partnerships are on record, tiered core and significant.

• Securities and Exchange Commission (SEC)coreStrategic or Co-development PartnerSEC is the licensing and regulatory authority for CSCS. SEC drives market-wide initiatives including the T+2 settlement transition directive that CSCS implements across Nigerian capital markets. CSCS works closely with SEC on regulatory alignment and market infrastructure development.
• Debt Management Office (DMO)significantStrategic or Co-development PartnerCSCS developed the DMO Portal in collaboration with Nigeria's DMO to digitize and simplify subscription processes for FGN Savings Bonds. The portal makes investment faster, more transparent, and user-friendly for a wider investor base.
• NASD PlccoreStrategic or Co-development PartnerCSCS provides clearing and settlement services for NASD OTC Securities Exchange trades at 0.2% fee (buy and sell). NASD is one of three exchanges (alongside NGX and LCFE) where CSCS provides post-trade infrastructure.
• Lagos Commodities and Futures Exchange (LCFE)coreStrategic or Co-development PartnerCSCS provides clearing and settlement services for LCFE commodities and futures trades at 0.2% fee. LCFE complements NGX and NASD in CSCS's multi-exchange infrastructure coverage.
• Fintech Brokers (Chaka, Bamboo)significantChannel Partner/ Reseller/ DistributorFintech brokers including Chaka and Bamboo use CSCS infrastructure to enable retail investor access to Nigerian capital markets. These fintechs accounted for 70% of new brokerage accounts registered with CSCS between January-June 2025 and are expanding cross-border to other African countries.
• Africa and Middle East Depositories Association (AMEDA)significantStrategic or Co-development PartnerRegional association of Central Securities Depositories. CSCS CEO Haruna Jalo-Waziri was elected Vice President of AMEDA in February 2022, representing Nigerian CSD in advancing post-trade services and capital market development across Africa and Middle East.
• Settlement BankscoreChannel Partner/ Reseller/ DistributorFinancial institutions participating in CSCS settlement infrastructure. Settlement Bank Participation Fee is N25 million onboarding with N2 million annual renewal. These banks facilitate fund transfers for trade settlements in Nigerian capital markets.
• Thomas MurraysignificantOthersInternational rating agency that assigned CSCS an 'A+' rating—the highest for any CSD in Sub-Saharan Africa—reflecting operational excellence and regulatory compliance standards.

Scale indicators15 records

Recent moves7 records

Expansion highlights6 records

Direct peers

• Strate (Pty) Ltd: South Africa's central securities depository, operating the CSD function for the JSE and South African Bond Exchange. The most directly comparable African national CSD to CSCS, serving a similar post-trade infrastructure role across multiple asset classes.
• Central Depository Services (India) Limited (CDSL): One of two Indian central securities depositories, providing dematerialized settlement, depository, and related services for the Indian capital market. Comparable to CSCS as a publicly listed emerging-market CSD with similar service breadth and revenue model.
• National Securities Depository Limited (NSDL): India's primary CSD, offering depository, settlement, and asset services for the Indian capital market. Comparable to CSCS through its monopoly CSD role, LEI issuance operations, and similar full-stack post-trade service suite.

Broad incumbents

• Clearstream: Deutsche Börse-owned international CSD and provider of settlement, clearing, and custody services globally. Broader and more international than CSCS, but offers an overlapping post-trade value proposition applicable to settlement, collateral management, and asset servicing.
• Euroclear: Belgium-based international CSD serving as a major settlement and safekeeping infrastructure for European and international securities. Operates a comparable CSD core business, but at materially greater international scale.
• DTCC (Depository Trust & Clearing Corporation): US-based market infrastructure provider operating the central securities depository for the US equity and fixed-income markets. Comparable to CSCS as a national CSD monopoly, though materially larger and more diversified.
• ASX (Australian Securities Exchange): Australia's vertically integrated exchange and settlement operator including ASX Clear and ASX Settlement (CSD) functions. Provides a comparison for the multi-asset, multi-venue CSD model CSCS operates across NGX, NASD and LCFE.
• B3 (Brasil, Bolsa, Balcão): Brazilian stock exchange and integrated CSD/clearing operator, providing trading, post-trade, and depository services for the Brazilian capital market. Offers a comparison point for emerging-market exchange-linked CSD infrastructure at much greater scale than CSCS.

Regional players

• JSE Clear (Johannesburg Stock Exchange): Clearing and settlement arm of the Johannesburg Stock Exchange providing CSD-grade services for South African capital markets. Regional African peer offering overlapping post-trade capabilities but in a separate jurisdiction.
• Central Depository & Settlement Co. Ltd (CDS, Mauritius): Mauritius's central securities depository providing settlement, clearing, and asset servicing for the Mauritian capital market. Closely analogous to CSCS as a smaller African national CSD with similar scope of services.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat6 records

Key risks5 records

Key highlights7 records

Customer concentration

• Xx.com/CSCSNigeria
• YouTubeyoutube.com/@cscsnigeria7047
• Facebookfacebook.com/cscsnigeria
• LinkedInlinkedin.com/company/central-securities-clearing-systems-plc
• Instagraminstagram.com/cscsnigeria

Compliance4 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles16 records

Funding overview

Funding rounds1 record

Investors1 record

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Central Securities Clearing System Plc