Central Securities Clearing System Plc (CSCS) has reduced lien fees for retail investors by 50 per cent, from 0.25 per cent to 0.125 per cent, while eliminating selected charges for family share transfers and brokers in a move to lower the cost of participating in Nigeria’s capital market.

A lien means the securities are temporarily restricted or pledged as security for an obligation, such as a loan. A lien fee is a charge for recording or maintaining a restriction on shares that have been pledged as collateral.

The investor may not be able to sell or transfer those shares until the lien is removed.

CSCS reduced the lien fee for retail investors from 0.25 per cent to 0.125 per cent, representing a 50 per cent reduction.

Under the revised pricing framework, CSCS also reduced nominal transfer fees for qualifying transfers between immediate family members from 0.3 per cent to zero.

In addition, the capital market infrastructure company removed fees for broker code creation and renewal, as well as eligibility fees payable by brokers across the exchanges serviced by CSCS.

According to CSCS, the move is expected to reduce transaction costs and remove some of the barriers facing investors and market intermediaries, particularly retail investors seeking greater access to the capital market.

CSCS said the revised charges are part of efforts to improve market accessibility, deepen retail investor participation and support liquidity and innovation across the Nigerian capital market.

The review is also expected to provide a more supportive operating environment for brokers, financial technology companies and other market participants developing products and services aimed at expanding access to investment opportunities.

CSCS, which provides depository, clearing and settlement services for Nigeria’s capital market, said the changes form part of its broader effort to improve market efficiency and strengthen the post-trade ecosystem.

The company added that it would continue to invest in technology, cybersecurity, operational resilience and service innovation to support the growth of a deeper and more inclusive capital market.

The revised pricing framework comes as market operators intensify efforts to attract more retail investors and reduce the cost and complexity of transactions in Nigeria’s capital market.

Managing Director/Chief Executive Officer of CSCS Plc, Shehu Yahaya Shantali, said: “As Nigeria’s capital market continues to grow and evolve, we believe its infrastructure must continually respond to the needs of investors and market participants. This review is about identifying areas where we can reduce friction, improve accessibility and support greater participation, while continuing to provide the secure, resilient and efficient infrastructure on which the market depends.”

Meanwhile, shareholders have commended CSCS for its revised pricing framework, describing the move as a bold step towards reducing the cost of transactions and improving participation in the Nigerian capital market.

President of the Newdimension Shareholders Association of Nigeria, Patric Ajudua, said the reduction and removal of selected fees would help attract more investors into the market and strengthen confidence among existing participants.

He said the initiative could also encourage other market regulators and operators to review their charges to further reduce the cost of investing and deepen participation in the capital market.

Ajudua added that shareholders expected the new pricing framework to make the market more accessible to retail investors and support efforts to broaden the investor base.