Nigeria’s Central Securities Clearing System (CSCS) is reviewing some of its fees less than seven months after introducing a new pricing structure, with proposed changes set to reduce charges on securities used as collateral and eliminate some fees paid by investors and stockbrokers.
The proposed review includes a 50 percent cut in retail lien fees, the removal of charges on securities transfers between immediate family members and the elimination of broker code creation and renewal fees.
CSCS is a key part of Nigeria’s capital-market infrastructure, providing clearing, settlement, and securities depository services that support transactions in the country’s securities market.
Under the proposed changes, the lien fee for retail clients conducting transactions below N100 million would fall from 0.25 percent to 0.125 percent.
A lien is an arrangement that gives a creditor an interest in an investor’s securities as security for an obligation, meaning the charge applies when securities are placed under such arrangements rather than to ordinary share purchases.
