CSCS Leverages Technology to Transform Nigeria’s Capital Market Operations

The Central Securities Clearing System (CSCS) has reiterated the transformative impact of technology on Nigeria’s capital market, highlighting its commitment to innovation and efficiency. This was a key focus at the 2024 annual conference of the Capital Market Correspondents Association of Nigeria (CAMCAN) in Lagos.

Speaking during a panel session themed “Bank Recapitalisation: Bridging the Gap Between Investors and Issues in the Nigerian Capital Market,” the Divisional Head of Business Services and Client Relations at CSCS Plc, Mrs. Onome Komolafe, outlined the strides made by the Nigerian Central Securities Depository in deploying cutting-edge technological solutions to simplify and enhance market transactions.

“In the last five years, CSCS has significantly invested in Application Programming Interfaces (APIs) to enable seamless interactions between brokers and the market,” Komolafe explained. “For instance, brokers can now open accounts for their clients, submit documents, and perform several operations remotely through our self-service portals. These innovations have eliminated the need for physical visits to CSCS offices.”

Komolafe also acknowledged the market’s positive reception of these innovations while addressing concerns regarding efforts to shorten the settlement cycle further. She emphasized the journey from T+5 to the current T+3 settlement cycle, noting that ongoing advancements in technology would soon allow for even faster settlement times.

“CSCS has introduced direct cash settlements, enhanced cybersecurity, and reduced settlement cycles, all of which have been embraced by the market. These initiatives reflect our commitment to transforming the capital market and aligning it with global best practices,” she said.

Beyond technology deployment, CSCS has made strides in educating market players. Komolafe highlighted the organization’s dedication to cybersecurity awareness, citing two international conferences held in recent years. She also pointed to the introduction of various engagement tools, such as a chatbot to address client concerns without necessitating physical interaction.

In her remarks, Mrs. Chinyere Joel-Nwokeoma, Chairman of CAMCAN, stressed the importance of transparency and regulatory compliance in bridging the gap between issuers and investors, particularly in the context of bank recapitalization.

“Strengthening corporate governance, enhancing disclosure requirements, and fostering collaboration between stakeholders are critical to achieving this,” Joel-Nwokeoma stated.

The event underscored the pivotal role of technology in driving Nigeria’s capital market toward greater efficiency and inclusiveness, with CSCS at the forefront of this transformation.