In a show of investor confidence underscored by strong fundamentals and a bold growth trajectory, shareholders of the Central Securities Clearing System (CSCS) have applauded the company’s N1.76 per share dividend payout, reflecting solid performance in its 2024 financial year. The nod came during CSCS’ 31st Annual General Meeting (AGM) in Lagos, where the firm’s board unveiled an impressive scorecard and hinted at deeper regional expansion and digital transformation.
Dividend Signal: Resilience in a Challenging Economy
The N1.76 dividend, in the context of Nigeria’s macroeconomic headwinds—including elevated inflation, FX volatility, and sluggish capital inflows—signals a compelling vote of confidence in CSCS’ earnings quality and operational discipline. Analysts at BRANDECONOMY view this payout not just as shareholder reward, but as a strategic assertion of CSCS’ liquidity strength and long-term profitability, particularly in a capital market still regaining footing post-COVID and amid ongoing monetary tightening.
The clearing house reported a 44% surge in operating income, a 24% increase in profit before tax, a 37% rise in gross earnings, and a 22% growth in total assets—figures that speak to robust topline growth and efficient asset management. More telling is the sustained trajectory of year-on-year growth despite systemic constraints across Nigeria’s financial services landscape.
Shareholder Activism: Calls for Cost Optimization, Regional Play
Veteran investor advocate and Chairman of the Independent Shareholders Association of Nigeria (ISAN), Mr. Boniface Okezie, lauded the firm’s performance as “excellent,” urging management to now extend CSCS’ frontier across African markets. “As the largest securities depository in West Africa, CSCS is ripe for regional scale,” Okezie said. This echoes BRANDECONOMY’s own strategic outlook that Africa’s nascent capital markets integration could offer fertile ground for CSCS to leverage its clearing and settlement infrastructure.
However, Okezie and other CSCS shareholders voices also raised the red flag on cost discipline—specifically, board-related expenses. As capital market institutions increasingly come under pressure to justify governance overheads, this feedback is likely to resonate with corporate boards seeking investor alignment in today’s ESG-conscious era.
Diversity, Digital Infrastructure, and the New Competitive Edge
Another shareholder, Mrs. Adetutu Shiyanbola of the Highly Favoured Shareholders Association, hailed the firm’s fiscal stewardship and encouraged stronger action on gender diversity. “We expect CSCS to champion inclusion at board and executive levels,” she remarked. This call is in line with broader stakeholder capitalism narratives sweeping through African boardrooms, where gender parity and inclusivity are no longer token targets but competitive advantages.
Chairman of the CSCS Board, Mr. Temi Popoola, affirmed that the company is actively pushing toward gender-balanced governance, while also investing in regional initiatives like the African Exchange Linkage Programme (AELP). The AELP aims to digitally integrate trading platforms across the continent, allowing investors seamless access to multiple exchanges—precisely the kind of initiative CSCS is well-positioned to anchor.
Cybersecurity, AI, and a Strategic CSR Agenda
Managing Director Alhaji Haruna Jalo-Waziri revealed that a significant portion of CSCS’ operational expenses is being channelled into next-gen cybersecurity systems. “We are scaling up our cybersecurity infrastructure using AI-driven tools and clearly defined KPIs,” he noted. In an era of rising digital threats to capital market systems, this proactive posture positions CSCS as a tech-forward clearinghouse investing not just in operational continuity but in trust capital.
He added that the company’s Corporate Social Responsibility (CSR) strategy is now more business-aligned—another hallmark of modern enterprise governance where impact is not peripheral but central to value creation.
Outlook: Beyond Settlement—A Systemically Important Financial Market Utility
As the sole central securities depository in Nigeria, CSCS remains a systemic player at the heart of market infrastructure. What is emerging, however, is a more assertive, innovation-led CSCS looking to reframe its role—from a passive post-trade utility to an active pan-African fintech enabler.
The dividend cheer is well-deserved, but the deeper story is CSCS’ strategic recalibration: enhancing operational agility, embracing digital resilience, expanding regional footprints, and aligning with global best practices on governance and sustainability.
In the final analysis, 2024 may well be remembered as a tipping point for CSCS—not just as a high-performing market infrastructure provider, but as a visionary leader in Africa’s capital market evolution.
