Clearing system moves to value-based pricing model as institutional clients face steepest increases in sweeping tariff review….
Nigeria’s Central Securities Clearing System (CSCS) has introduced a comprehensive overhaul of its fee structure for 2026, marking a significant shift toward value-based pricing, institutional-focused revenue generation, and sharply higher transaction charges across multiple market services.
The revised schedule of fees and charges, exclusively obtained by Nairametrics, shows substantial increases across onboarding, custody, and trading-related services. CSCS has since confirmed the adjustments.
The changes signal a strategic repositioning of the clearing system’s revenue model, with a stronger emphasis on institutional investors, transaction value alignment, and expanding income streams from Nigeria’s capital market activity.
In several cases, charges have risen by more than 3,000 percent, alongside the introduction of new service categories such as API monetisation, premium investor tiers, and expanded data-driven services.
Fixed income and custody services see the steepest increases
The most significant adjustments are concentrated in fixed income operations and custodial services, underscoring CSCS’s focus on high-volume, high-value segments of the market.
According to the revised structure:
- OTC trade fees surged from ₦15 per million to ₦500 per million, a 3,233% increase
- Custody charges shifted from a flat fee of ₦1,300 to 0.03% of transaction value
- Custodian code creation rose from ₦72,800 to ₦250,000 (243% increase)
- Settlement bank onboarding increased from ₦15.6 million to ₦25 million
- Margin account onboarding jumped from ₦50,000 to ₦200,000
- Corporate onboarding fees rose from ₦20,000 to ₦100,000
- Renewal charges climbed by 156%, strengthening recurring revenue streams
Retail investors were also affected, although increases were comparatively moderate. Stock statement fees rose from ₦700 to ₦1,000, while changes of name or address doubled from ₦1,000 to ₦3,000. Inter-member transfer fees also increased to ₦3,000.
The new framework further introduces additional charges for services such as joint accounts, judiciary-linked processes, premium investor tiers, API access, and expanded market data offerings, moves some stockbrokers described as aggressive and cost-intensive.
Shift toward institutional and value-based pricing model
The 2026 pricing overhaul reflects a clear strategic pivot: institutional clients now sit at the centre of CSCS’s revenue architecture.
Banks, custodians, and market makers entities responsible for large transaction volumes face the steepest increases, with many charges rising between 50% and 300%.
A key feature of the new structure is the transition from flat fees to asset-linked pricing, particularly in custody and distribution services. This means revenue will now scale in proportion to portfolio size, positioning CSCS to benefit directly from market expansion and rising asset valuations.
Market analysts note that this model is especially profitable in periods of strong market performance, where institutional portfolios expand significantly.
Fixed income market becomes a core revenue driver
Another major shift is the aggressive monetisation of fixed income activity. The sharp rise in OTC transaction fees suggests a deliberate strategy to extract more value from Nigeria’s growing debt market, including government bonds and commercial papers.
Combined with higher onboarding and distribution charges, the new structure positions fixed income operations as a central revenue engine for CSCS going forward.
At the same time, retail investors are not insulated from the changes. While individual fee increases may appear modest in isolation, the cumulative impact across account maintenance, documentation, and transactions is expected to raise overall costs for everyday market participants.
Concerns over market access and investor participation
The fee restructuring comes at a time when regulators and market operators are actively working to deepen retail participation in Nigeria’s capital market.
According to GTI Group CEO Abubakar Lawal, only about 10% of the estimated 6 million CSCS-registered accounts are currently active, highlighting a wide participation gap in the market.
He stressed the need to convert dormant accounts into active investors through improved education and broader market access, noting that increased participation is critical to achieving Nigeria’s long-term financing ambitions, including funding the projected $1 trillion economy target by 2030.
However, concerns are emerging within the brokerage community. Some operators argue that the new fee structure could discourage participation and undermine efforts to broaden the investor base, particularly among retail investors.
There are also ongoing discussions within the Securities and Exchange Commission (SEC) and other stakeholders on how to make Nigeria’s capital market more competitive relative to peer frontier markets such as the Johannesburg Stock Exchange (JSE).
Against this backdrop, critics warn that while the CSCS overhaul may strengthen revenue efficiency, it could also raise barriers to entry and reduce overall market participation if not carefully balanced.
