Nigeria’s Central Securities Clearing System has rolled out a comprehensive revision of its fee framework for 2026, introducing steep increases across several market services and signalling a clear pivot toward value-based pricing and institutional client dominance.
According to the revised schedule of fees and charges obtained by Nairametrics and confirmed by CSCS, the new structure represents one of the most extensive overhauls in recent years. The changes affect onboarding processes, custodial services, fixed income transactions, and data-driven offerings, with some charges rising by more than 3,000%.
At the core of the adjustment is a strategic realignment aimed at boosting revenue and tying earnings more closely to transaction size and market activity. The revised model also introduces new service categories, including API monetisation, investor segmentation tiers, and expanded digital service offerings.
Sharp increases across key market services
The most significant changes are concentrated in fixed income and custodial operations, reflecting CSCS’s increasing focus on high-volume institutional flows.
- OTC trade fees surged from ₦15 per million to ₦500 per million, a 3,233% increase, making it one of the most aggressive upward adjustments in the schedule
- Custody charges shifted from a flat ₦1,300 fee to 0.03% of transaction value, linking revenue directly to asset size
- Custodian code creation rose from ₦72,800 to ₦250,000, a 243% jump
- Settlement bank onboarding increased from ₦15.6 million to ₦25 million, representing a 60% rise
- Margin account onboarding climbed 300%, moving from ₦50,000 to ₦200,000
- Corporate onboarding fees surged 400%, from ₦20,000 to ₦100,000
- Renewal fees also increased by 156%, reinforcing recurring revenue streams
Retail-facing charges were also adjusted upward, though at comparatively moderate levels. Stock statement fees rose 43%, while changes to investor details such as name or address doubled to 200%. Inter-member transfer fees also increased to ₦3,000.
Shift toward institutional and value-based pricing
The 2026 pricing structure signals a deliberate pivot toward institutional investors, particularly banks, custodians, and market makers that handle large transaction volumes. Many of these entities are now facing fee increases ranging between 50% and 300%, underscoring the shift toward clients with deeper capital bases and higher trading frequency.
A notable transformation within the new framework is the move away from flat fees toward asset-linked pricing, especially in custody-related services. By pegging charges to a percentage of assets under management or transaction value, CSCS effectively aligns its earnings with market growth and portfolio expansion.
This approach becomes particularly profitable in periods of market appreciation or when institutional portfolios scale significantly.
Fixed income market emerges as key revenue driver
Another major highlight of the overhaul is the intensified monetisation of Nigeria’s fixed income market. The sharp rise in OTC trade fees suggests a strategic focus on government securities, corporate bonds, and commercial papers as core revenue contributors.
Combined with higher onboarding and distribution charges, the new structure positions fixed income operations as a central pillar of CSCS’s earnings strategy.
Retail investors face cumulative cost pressure
While retail investors are not the primary target of the increases, they are not insulated from the impact. Individual adjustments appear modest on a per-transaction basis, but the breadth of changes across account maintenance, reporting, and transfers means overall costs are expected to rise for active users.
Given the large base of retail accounts, even small increments are expected to generate substantial aggregate revenue for the market infrastructure provider.
Policy context and industry concerns
The revised fee regime comes at a time when the Securities and Exchange Commission (SEC) is intensifying efforts to deepen retail participation in Nigeria’s capital market.
Market data cited by Abubakar Lawal indicates that only about 10% of the estimated 6 million CSCS-linked investor accounts are currently active. He has previously urged stakeholders to focus on converting dormant accounts into active market participants through improved financial literacy and access.
These efforts align with broader capital market ambitions tied to Nigeria’s Investment and Securities Act (ISA) 2025, which aims to support long-term funding goals, including a projected $1 trillion economy by 2030.
At the same time, there are indications that the Securities and Exchange Commission has been engaging market operators, including stockbrokers, around the need to improve competitiveness and reduce barriers to entry for retail investors.
Against this backdrop, some industry stakeholders argue that the new fee regime could create headwinds for market participation. Critics describe the structure as aggressive, warning that higher costs may slow efforts to broaden both retail and institutional engagement in the Nigerian capital market.