Security Clearing System Eyes T+1 Settlement

The Central Securities Clearing System (CSCS) Plc said it is targeting a transition to T+1 settlement after successfully implementing T+2 in Nigeria as this will further enhance market liquidity and bolster security within the financial landscape.

The company stated this at its 32nd Annual General Meeting held in Lagos as its shareholders approved a total dividend of N8.9 billion, representing N1.78 per share.

Speaking, the chairman of CSCS, Temi Popoola, outlined a forward-looking strategy aimed at reinforcing the firm’s role as a systemically important market infrastructure institution.

He disclosed that the company is intensifying efforts to expand its product offerings across multiple asset classes and market segments, a move designed to support broader capital market development and unlock new growth channels.

Popoola explained that CSCS is also prioritising value creation from its data assets and post-trade service capabilities, with a clear focus on diversifying revenue streams while increasing shareholders value on investment.

According to him, these strategic initiatives are expected to position the organisation to effectively capture emerging opportunities in an increasingly dynamic financial landscape.

He emphasised that the company’s growth ambitions are closely tied to broader macroeconomic and policy developments, noting that sustained reform implementation, fiscal discipline and continued market modernisation remain critical to improving liquidity, widening investor participation and unlocking long-term value within the Nigerian capital market.

Also speaking, the chief executive officer of CSCS, Shehu Shantali said the company launched a comprehensive internal data integrity initiative designed to enhance the accuracy, reliability and robustness of the systems underpinning market operations.

He noted that “a key highlight of the year was the successful migration of Nigeria’s equity settlement cycle from T+3 to T+2, a milestone achieved through close collaboration with regulators and stakeholders across the financial ecosystem.”

According to him, the transition has significantly improved market liquidity, reduced counterparty risk and brought Nigeria’s capital market framework in line with global best practices.

Building on this progress, Shantali said the company is now setting its sights on a further transition to T+1 settlement.

The CEO said CSCS will continue to work closely with regulators and market operators to advance this next phase, which is expected to deepen liquidity, enhance operational efficiency and strengthen overall market security.

He explained that the company’s strategic priorities in the coming year will centre on accelerating digital transformation and automation across the post-trade value chain, expanding system interoperability and integration, strengthening data infrastructure and analytics capabilities, and reinforcing cyber resilience to safeguard market integrity.

The strong execution of these initiatives translated into improved financial performance, with CSCS recording revenue of N23.21 billion, representing a 66 per cent increase, while operating profit rose to N8.72 billion during the period under review, reflecting the growing impact of its innovation-driven growth strategy and expanding service offerings.