By Radarr Africa

Copyright radarr

The Central Securities Clearing System (CSCS) has reported securities transactions worth N2.112 trillion between May and August 2025, marking a 138.44 per cent increase compared to the N885.93 billion recorded in the same period of 2024.

Data from the CSCS showed that the four-month total covered 95.66 billion units of securities executed across 2,063,939 deals, compared with 67.68 billion units and 770,217 deals in the corresponding period of 2024. This represents a 41.34 per cent rise in transaction volume and a 167.97 per cent jump in the number of deals year-on-year.

A month-by-month breakdown revealed a strong growth trend in settlement values. In May 2025, transactions stood at N362.34 billion, which rose slightly to N393.65 billion in June, peaked at N910.31 billion in July, before closing at N446.08 billion in August.

Securities volume during the same period stood at 19.28 billion units in May, 14.85 billion in June, 35.34 billion in July, and 26.19 billion in August.

Deals executed also followed a similar upward trend, with 378,967 in May, 370,174 in June, 649,996 in July, and 664,802 in August.

By comparison, settlement values for the same months in 2024 stood at N189.38 billion in May, N233.24 billion in June, N259.19 billion in July, and N204.11 billion in August. Securities volumes at that time included 9.28 billion units in May, 27.57 billion in June, 14.52 billion in July, and 16.31 billion in August. The number of deals in 2024 stood at 180,555 in May, 184,072 in June, 203,769 in July, and 201,821 in August.

The sharp rise in transactions underlines renewed investor participation in Nigeria’s capital market and reflects growing market confidence, according to industry watchers.

Meanwhile, CSCS, Nigeria’s leading clearing and settlement infrastructure, is preparing for a major shift in operations. The company has received support from regulators and stakeholders for its planned migration to a T+2 settlement cycle, which will take effect from November 28, 2025. Under the new system, trades will be settled two business days after execution, instead of the current three-day cycle.

The company explained that the transition would enhance market efficiency, reduce counterparty risk, and align Nigeria’s capital market with international best practices, similar to standards already in place in advanced economies such as Japan, the United Kingdom, and Switzerland.

As part of its broader reforms, CSCS has been upgrading its digital infrastructure to ensure smoother operations. This includes improvements to the Brokers Portal, RegConnect, Custodian Portal, and Regulators Portal. The company said these upgrades are supported by comprehensive infrastructure renewal and a review of operational processes aimed at improving efficiency and reliability.

To further improve access to services, CSCS recently introduced a USSD code service that allows investors to perform basic functions without internet connectivity. Through the service, investors can retrieve their Clearing House Number, check their Direct Cash Settlement status, view stock positions and account balances, and confirm account status.

Commenting on the development, the Managing Director/Chief Executive Officer of CSCS, Mr. Haruna Jalo-Waziri, said the innovation demonstrates the company’s commitment to broadening investor access. He added that the reforms would not only improve service delivery but also strengthen investor confidence in the capital market.

Market analysts say the combination of higher transaction volumes, settlement reforms, and technology-driven services will put Nigeria’s capital market on a stronger footing, making it more attractive to both local and international investors.