Nigeria: CSCS Shareholders Approve N1.78 Dividend on Strong FY2025 Performance

Shareholders of Central Securities Clearing System Plc (CSCS) have approved a total dividend payout of N8.9 billion, translating to N1.78 per share for the financial year ended December 31, 2025.

The approval was granted at the company’s 32nd Annual General Meeting in Lagos, reflecting investor confidence following a solid financial performance despite a challenging macroeconomic environment.

CSCS reported gross earnings of N28.67 billion, marking a 10% increase from N26.09 billion recorded in 2024. Operating income also rose by 12% to N24.86 billion, supported by increased market activity and disciplined execution.

Chairman Temi Popoola said the dividend decision reflects a balanced strategy of delivering consistent shareholder returns while reinvesting for long-term growth. He reiterated that enhancing shareholder value, including higher future payouts, remains a key priority.

Looking ahead, the company plans to deepen its market infrastructure through technology upgrades and operational efficiency. It also aims to expand across asset classes and unlock new revenue streams from data and post-trade services.

Managing Director Shehu Shantali disclosed that revenue rose sharply by 66% to N23.21 billion, driving operating profit to N8.71 billion. This significantly improved the operating margin to 37.5%, up from 10.7% in the previous year.

He added that total equity strengthened to N43.49 billion, attributing the growth to prudent risk management and operational discipline amid global uncertainties, including geopolitical tensions and trade disruptions.

Shareholder groups commended the company’s performance while offering strategic recommendations. Boniface Okezie, National Coordinator of the Progressive Shareholders Association of Nigeria, urged CSCS to adopt a more global outlook, while acknowledging the successful transition to the T+2 settlement cycle.

Similarly, Patrick Ajudua, President of the New Dimension Shareholders Association, called for improved communication strategies to address N390 million in unclaimed dividends and enhance shareholder engagement.

During the meeting, shareholders also ratified the appointments of Shehu Shantali as Executive Director and Kennedy Uzoka as Non-Executive Director, strengthening the company’s governance structure.

As Nigeria’s sole central securities depository, CSCS plays a critical role in the clearing, settlement, and custody of securities traded on the Nigerian Exchange. Its performance is widely regarded as a barometer for the overall health of the country’s capital market.

The company’s transition to a T+2 settlement cycle—where transactions are completed within two business days—further aligns Nigeria with global standards, enhancing liquidity and reducing systemic risk in the financial system.