Nigeria’s Central Securities Clearing System Plc has assured its shareholders of higher returns, following the approval of an N8.9 billion dividend at its 32nd Annual General Meeting in Lagos.

Giving his assurance, the Chairman of the CSCS Board of Directors, Mr. Temitope Popoola, said the company remains committed to increasing shareholder returns going forward.

The modest dividend, which translates to N1.78 per share, comes amid a broader strategy to strengthen market infrastructure and align Nigeria’s capital market with global standards.

Popoola said the recent minimum capital requirements introduced by the Securities and Exchange Commission (SEC) necessitated a cautious approach to payouts for 2025.

“Dividends have to increase under the leadership of this board… the subject of dividends is not negotiable. Shareholders must see returns for their investments,” he said.

“Part of the reasons why you didn’t see a material jump this year… is the SEC rule asking for capital levels to be raised across the industry, and it would just be prudent to be careful with how much capital you have before paying out,” Popoola added.

“CSCS is an infrastructure of the capital market… as the market advances… our first responsibility is to be ready to meet those needs, whether it’s T+1 settlement, extended trading hours, or digital solutions,” Popoola added emphasizing that CSCS is positioning itself to support evolving market demands through innovation and infrastructure upgrades.

“A key highlight of the year was the successful migration from T+3 to T+2 settlement… which improved liquidity and reduced counterparty risk,” Chief Executive Officer, Mr. Shehu Shantali echoed Popoola’s outlook while highlighting operational milestones and future priorities.

“We are now working closely with regulators to move toward T+1, which will further deepen liquidity, enhance efficiency, and strengthen market security,” added Shantali, whose appointment was ratified by shareholders.

According to Popoola, CSCS is positioned to capture emerging opportunities in an increasingly dynamic financial landscape, linking the company’s growth ambitions to macroeconomic reforms, fiscal discipline, and continued market modernization.

CSCS’s push toward T+1 follows its earlier transition to T+2 settlement, a move widely credited with improving efficiency and aligning Nigeria with global best practices.

The next phase of migration, scheduled for May 29, is expected to further compress settlement timelines, enabling faster capital recycling and reducing systemic risk across the market.

The company noted that achieving T+1 will require deeper collaboration with regulators, exchanges, and market participants, alongside investments in digital infrastructure, automation, and system interoperability.

Shantali added that CSCS has launched a comprehensive data integrity initiative to enhance the accuracy and resilience of its systems, while also strengthening cybersecurity frameworks to safeguard market operations.

According to him, the next phase will focus on accelerating digital transformation, enhancing system interoperability, strengthening data infrastructure, and reinforcing cyber resilience to safeguard market integrity.

The Group’s financial statement shows that revenue rose significantly to N23.21 billion, driven largely by growth in core operational income, particularly transaction and depository fees.

Transaction fees more than doubled during the year, reflecting increased market activity, while depository services also recorded steady growth.

Gross earnings for the 2025 financial year stood at N28.67 billion, up 10% year-on-year, supported by increased market activity.

Profit before tax dipped -1.9% to N13.57 billion, down from N13.84 billion, while profit after tax fell more sharply by -17.1% to N9.90 billion from N11.95 billion in 2024, respectively due to a substantial increase in income tax expense, which nearly doubled year-on-year.

Total equity also strengthened to N43.49 billion, underscoring the institution’s long-term sustainability.

Operating expenses also increased by +16.5% to N14.50 billion, up from N12.44 billion in 2024, driven mainly by higher personnel costs and other administrative expenses.

However, total operating income remained higher than the previous year, indicating underlying strength in the company’s core business operations.

This suggests that while CSCS generated higher earnings, a larger tax burden weighed on net returns.

The SEC had issued a regulatory directive mandating capital market operators to raise minimum capital requirements across brokers, fund managers, and digital asset firms, as reported by Nairametrics.

In a circular released by the Commission on January 16, 2026, SEC set a compliance deadline of June 30, 2027, for minimum capital raise, aiming to ‘improve market resilience’, weed out undercapitalised players, and reward firms with governance depth and scale.

This seems to be reshaping the capital market landscape and influencing dividend policies across capital market institutions, as all affected CMOs must meet SEC June 2027 deadline.

In addition, the planned shift to T+1 settlement also builds on earlier reforms, including the transition to T+2, aimed at boosting efficiency and aligning Nigeria with global markets.

Shorter settlement cycles are associated with improved liquidity, lower counterparty risk, and more efficient capital utilisation—factors considered critical to attracting both domestic and foreign investors.