Central Securities Clearing System (CSCS) Plc is exploring the prospect of listing on the Nigerian Exchange (NGX) as part of a broader strategy to solidify its position as a leading post-trade infrastructure provider.
The company, which serves as Nigeria’s premier central securities depository, discussed this strategic direction at its 31st yearly general meeting (AGM) held in Lagos at the weekend, where shareholders voiced critical demands for greater transparency, governance and regional integration.
CSCS Chairman, Temi Popoola, emphasised the benefits of an NGX listing, including improved access to capital, enhanced market visibility, and stronger corporate governance. However, he noted that the decision is complex, involving careful consideration of market conditions, regulatory frameworks, and long-term strategic alignment.
“We recognise the self-evident benefits of listing, but we must balance this with our growth priorities and the need for sustainable shareholder value,” Popoola pointed out that the board is weighing various factors, including the timing and structure of a potential public offering.
This listing, if pursued, would not only deepen CSCS’s capital base but also align it with global best practices, potentially making it more attractive to institutional investors and boosting its credibility in the broader financial ecosystem.
For the 2024 financial year, he said CSCS reported robust results, including a 37 per cent jump in gross earnings to N26.1 billion and an 18.7 per cent rise in profit after tax (PAT) to N11.95 billion.
According to him, total assets expanded by 22 per cent to N64.43 billion, reflecting disciplined cost management and strategic investments.
The company declared a dividend of N1.76 per share, up 17.3 per cent from the previous year, translating to a total payout of N8.8 billion.
CSCS’s strategic roadmap for the next three to five years prioritises regional expansion, aligning with its ambition to become a dominant post-trade infrastructure provider across Africa.
This includes active participation in the African Exchanges Linkage Project (AELP), which aims to integrate trading across multiple African markets, enhancing cross-border liquidity and investment flows.
Managing Director/CEO Haruna Jalo-Waziri described 2024 as a “transformative year” that laid the groundwork for CSCS to emerge as “Africa’s most trusted and innovative depository”.
He also highlighted substantial investments in technology, including cybersecurity, artificial intelligence (AI) and digital infrastructure, aimed at improving operational efficiency and reducing costs.
“We are on the front line in terms of connectivity and data security, leveraging AI-driven tools to enhance decision-making and operational resilience,” Jalo-Waziri said, acknowledging the challenges posed by rising technology costs due to forex instability.
CSCS is also grappling with rising operational costs, with shareholders raising concerns over escalating diesel prices and technology expenses.
Jalo-Waziri revealed that the company has launched an internal cost review to identify savings opportunities without compromising service quality.
On corporate social responsibility (CSR), shareholders urged the board to broaden its impact beyond education, advocating for initiatives in healthcare, social welfare, and youth empowerment. The board indicated plans to leverage blockchain-enabled CSR reporting for greater transparency and alignment with evolving community needs.
