CSCS Records ₦2.1 Trillion Transactions in Four Months

The Central Securities Clearing System (CSCS) has announced that it processed transactions worth ₦2.1 trillion within the first four months of 2025, underscoring its pivotal role in driving efficiency and stability in Nigeria’s capital market. The clearinghouse, which serves as the financial market’s post-trade services provider, revealed that the milestone reflects growing investor confidence in the Nigerian Exchange (NGX) and the resilience of the market amid global and domestic headwinds.

According to the management of CSCS, the value of transactions recorded over the review period signals a positive trajectory for the capital market, with increased activity in equities, fixed income, and other investment instruments. Officials noted that the transactions, which cut across retail and institutional investors, highlight the effectiveness of ongoing reforms targeted at boosting transparency and deepening liquidity.

Market analysts attributed the surge in transactions to a combination of factors, including improved participation from domestic investors, steady inflows from foreign portfolio investors, and confidence boosted by the Central Bank of Nigeria’s (CBN) exchange rate reforms, which have enhanced clarity in forex transactions. They added that the market’s performance also reflects increasing interest in equities driven by corporate earnings reports, as well as stronger participation in government securities, which remain attractive due to elevated yields.

CSCS stated that beyond transaction volumes, it has continued to focus on operational excellence, deploying new technology to improve settlement efficiency, enhance investor protection, and reduce systemic risks. The clearinghouse emphasized that its goal is not just to facilitate trades but to build long-term confidence in Nigeria’s capital market by ensuring secure and reliable post-trade processes.

In addition, the clearinghouse highlighted the importance of collaboration with the Nigerian Exchange Limited (NGX), Securities and Exchange Commission (SEC), and other market stakeholders in driving reforms that align the Nigerian capital market with global best practices. This includes ongoing efforts to shorten settlement cycles, strengthen risk management frameworks, and integrate digital solutions to enhance trading and settlement processes.

Financial experts noted that the ₦2.1 trillion figure also reflects a growing appetite for alternative asset classes, with more investors diversifying beyond equities into bonds, exchange-traded funds (ETFs), and derivatives. They pointed out that these developments are critical to building a more resilient capital market that can support Nigeria’s ambition of becoming a trillion-dollar economy.

CSCS management assured investors that it will continue to innovate, focusing on leveraging technology and partnerships to deepen market participation. They also stressed the clearinghouse’s commitment to promoting financial inclusion by providing retail investors with seamless access to the market through digital platforms.

The announcement comes at a time when the Nigerian capital market has been experiencing heightened activity, with the NGX posting gains in market capitalization and improved participation across sectors such as banking, industrial goods, and consumer goods. Analysts predict that if current reforms are sustained, the market could record even higher transactions by the end of 2025, further strengthening the role of CSCS as the backbone of market infrastructure.

With this milestone, CSCS has reinforced its position as a key player in the growth and sustainability of Nigeria’s financial system. Stakeholders expressed optimism that continuous reforms, coupled with technological innovation and investor confidence, would help drive the market toward greater depth and stability, ensuring it remains a vital platform for mobilizing capital and driving economic development.