The Central Securities Clearing System Plc (CSCS) has reduced lien fees for retail investors by 50 per cent as part of efforts to lower the cost of participating in Nigeria’s capital market.
Under the revised pricing framework, the lien fee has been reduced from 0.25 per cent to 0.125 per cent.
A lien refers to a restriction placed on securities that have been pledged as security for an obligation, such as a loan. The restriction may prevent an investor from selling or transferring the shares until the lien is removed.
CSCS also announced the removal of nominal transfer fees for qualifying transfers between immediate family members.
The fee for such transfers has been reduced from 0.3 per cent to zero.
In addition, the company has removed charges for broker code creation and renewal, as well as eligibility fees payable by brokers across the exchanges serviced by CSCS.
According to CSCS, the changes are expected to reduce transaction costs and remove some of the barriers facing investors and market intermediaries.
The company said the revised charges were part of efforts to improve market accessibility, deepen retail investor participation and support liquidity and innovation across Nigeria’s capital market.
The review is also expected to create a more supportive operating environment for brokers, financial technology companies and other market participants developing investment products and services.
CSCS provides depository, clearing and settlement services for Nigeria’s capital market.
The company said it would continue to invest in technology, cybersecurity, operational resilience and service innovation to support the development of a deeper and more inclusive market.
The latest fee reductions come as market operators intensify efforts to attract more retail investors and simplify the process of participating in the capital market.
Lower transaction-related charges could make selected market services more accessible, although investors will still need to consider other costs associated with buying, holding and selling securities.
The revised framework is therefore expected to support broader efforts to improve efficiency and reduce the cost of accessing Nigeria’s investment market.
