At the 2024 annual conference of the Capital Market Correspondents Association of Nigeria (CAMCAN) in Lagos, the Central Securities Clearing System (CSCS) underscored how technology is playing a pivotal role in enhancing the Nigerian capital market. This development came to light during a panel session titled ‘Bank Recapitalisation: Bridging the Gap Between Investors and Issues in the Nigerian Capital Market.’
Mrs. Onome Komolafe, the Divisional Head of Business Services and Client Relations at CSCS Plc, explained how the Nigerian Central Securities Depository has integrated several technological innovations to ease transactions and improve market participation.
“Over the past five years, CSCS has rolled out numerous Application Programming Interfaces (APIs), enabling brokers to interface with the market remotely. You can open an account for your client or submit documents to CSCS from the comfort of your office, without the need to physically visit CSCS,” Komolafe remarked.
The widespread adoption of these technologies has been met with positive reception from the market. Despite initial concerns regarding attempts to shorten the settlement period, CSCS has already reduced the settlement cycle from T+5 days to T+3 days, with plans to further streamline it.
She emphasized that these technological advancements have been key to improving processes such as account openings, direct cash settlement, and cybersecurity, contributing to the overall transformation of the market.
Furthering its commitment to market development, CSCS has also placed a strong emphasis on educating stakeholders. Komolafe highlighted CSCS’s leadership in cybersecurity and its dedication to offering educational programs and support through international conferences and customer service platforms like chatbots.
“Our goal is to make it easier for market participants to engage with the system without having to be physically present,” she explained.
Mrs. Chinyere Joel-Nwokeoma, Chairman of CAMCAN, also shared insights on bridging the gap between issuers and investors. She advocated for recapitalization strategies that prioritize transparency, regulatory compliance, and the strengthening of corporate governance.
She also called for the creation of innovative financial instruments tailored to the needs of both investors and issuers, fostering a collaborative and trustworthy market environment.
As CSCS continues to leverage technology to transform the Nigerian capital market, it remains committed to improving market efficiency, enhancing investor access, and promoting a secure and transparent financial ecosystem.
