CSCS proposes halving lien fees, waiving family transfer charges

The Central Securities Clearing System (CSCS) has proposed cutting the lien fee for retail investors by half and scrapping the 0.3% charge on securities transfers between immediate family members. The proposed changes also target stockbroker costs, removing fees for broker code creation and eligibility on major exchanges.

Lien fee drops from 0.25% to 0.125%

Under the proposal, the lien fee for retail clients handling transactions below N100 million would fall from 0.25% to 0.125%, a reduction of 50%. A lien is an arrangement where a creditor holds an interest in an investor's securities as security for an obligation, meaning the fee applies when securities are placed under such arrangements rather than during ordinary share transactions.

CSCS is also proposing to remove the existing 0.3% charge on nominal transfers of qualifying securities between immediate family members. The relationships that qualify include spouses, parents, children, siblings and stepchildren. If the changes take effect, investors moving eligible securities within those family relationships would no longer pay that charge.

Stockbroker charges targeted

Beyond retail investors, the proposed review also targets costs borne by stockbrokers. CSCS plans to drop the N145,600 fee, excluding VAT, for broker code creation and renewal. It also proposes scrapping the N36,400 eligibility fee payable by stockbroking firms across the Nigerian Exchange (NGX), the NASD and the Lagos Commodities and Futures Exchange (LCFE).

Removing these charges could lower the administrative and operational expenses that come with participating in Nigeria's capital market infrastructure.

Less than seven months after 2026 fee overhaul

The proposals arrive less than seven months after CSCS introduced an overhauled fee structure that came into force on January 1, 2026. That earlier review drew attention from market participants because it raised charges on some services. At the time, CSCS said its core fees had not changed and that the adjustments largely affected services that had previously been underpriced or offered at no cost.

The latest proposal is a targeted adjustment rather than a full reversal of the 2026 pricing framework. CSCS's current fee schedule still includes charges for transactions, custody, accounts, online subscriptions and other services. A 0.3% CSCS fee on sales executed on the NGX also remains in place.

CSCS said the proposed reductions are designed to ease friction for retail investors, lower running costs for market intermediaries, and support broader participation, efficiency and liquidity in Nigeria's capital market.

For Nigerian investors, the changes mean cheaper access to the market if they use securities as collateral or transfer assets within a family. For stockbrokers, the removal of fixed charges would cut entry and operation costs, potentially encouraging more activity on the exchanges.