The decision by the Central Securities Clearing System (CSCS) Plc to declare its first-ever interim dividend – an impressive N1 per share for the first half (H1) of the year – is a historic moment in the company’s financial evolution.
In a macro environment often defined by volatility, currency pressures, and changing monetary dynamics, approving an interim dividend signals deep conviction in the company’s forward earning power.
The first-ever interim dividend of N1 per share represents 56 percent of the total dividend of N1.78 per share paid by CSCS for the 2025 financial year, demonstrating the Company’s strong earnings momentum and confidence in its outlook.
CSCS serves as the central clearing house and central securities depository for the main Nigerian Exchange (NGX), but its own shares are not listed but traded over-the-counter (OTC) on the NASD platform. The stock traded at N95.14 per share as at Friday, July 17. As at December 31, 2025, the company has issued and fully paid-up share capital of 5 billion ordinary shares.
Nigerian Exchange Group Plc (NGX Group) remains the largest shareholder in CSCS Plc owning 43.52 percent equity stake. FMDQ Holdings Plc owns 21.61 percent after it acquired a major block (1.08 billion shares) from Artemis Limited and Leadway Insurance to become the second-largest shareholder. Access Holdings Plc (7.50 percent), United Bank for Africa Plc (5.37 percent), while Other shareholders hold 22 percent stake in the company.
By distributing liquidity twice a year, CSCS enhances share yield predictability, lowers the duration risk for long-term holders, and aligns its cash flow profile with top-tier international financial benchmarks.
Record H1’2026 financial performance …
CSCS delivered one of the strongest financial performances in its history during the first half of 2026.
Total operating income increased by 92percent to N18.51 billion, driven primarily by significantly higher transaction fee income as capital market activity strengthened, continued growth in depository services, expanding collateral management revenues and increased contributions from data and technology-enabled services. Investment income also recorded healthy growth as the Company continued to optimise its investment portfolio. While operating income grew by 92percent, operating expenses increased by only 38percent, demonstrating the scalability of CSCS’ business model and the benefits of disciplined cost management.
As a result, operating profit increased by 186 percent to N10.11 billion, Profit Before Tax rose by 115percent to N13.21 billion, while Earnings Per Share (EPS) increased from 109.1 kobo to 190.1 kobo.
The Company’s operational efficiency also strengthened considerably during the period.
The Cost-to-Income Ratio improved from 63.2percent in the corresponding period of 2025 to 45.4percent, while Operating Profit Margin increased from 36.8percent to 54.6percent, reflecting strong operating leverage, disciplined cost management and the continued scalability of the Company’s business model
It is an important milestone; it is also a reminder that our work continues – Popoola
“Today marks an important milestone in the journey of CSCS Plc. Our Board has approved the Company’s first-ever interim dividend, a reflection of the strength of our business, the quality of our earnings and our confidence in the future. Behind this milestone is a business that continues to deliver strong, sustainable performance.
“In the first half of 2026, CSCS recorded a 92 percent increase in operating income, 186 percent growth in operating profit and 115 percent growth in profit before tax, while significantly improving operating efficiency,” said Temi Popoola, board chairman, CSCS Plc.
“These results are encouraging not simply because they are strong, but because they demonstrate that we are building a more resilient, scalable and efficient institution capable of creating long-term value.
“As Chairman of the Board, I am especially pleased that this milestone reflects not only strong financial performance, but also the discipline of an institution that continues to balance rewarding shareholders with investing for the future. That means continuing to invest in the technology, innovation, resilience and people that will shape the next chapter of Nigeria’s capital market infrastructure,” he said.
“I would like to thank my fellow Directors for their guidance and stewardship, our Managing Director/CEO, Shehu Yahaya Shantali, and the entire management team for their leadership, our dedicated employees for their commitment, and our market participants and shareholders for the confidence they continue to place in CSCS.
While today is an important milestone, it is also a reminder that our work continues. We remain committed to building a world-class financial market infrastructure institution that supports the continued growth, resilience and global competitiveness of Nigeria’s capital markets. I look forward to the exciting journey ahead,” Popoola added.
We are particularly encouraged by the strong growth in earnings – Shantali
“Our first half performance reflects the strength and resilience of CSCS’ business model, the dedication of our people and the continued confidence of market participants. We are particularly encouraged by the strong growth in earnings, the significant improvement in operating efficiency and our ability to translate that performance into enhanced shareholder returns, as demonstrated by our first ever interim dividend.
“Looking ahead, we remain focused on strengthening our core market infrastructure, investing in technology and innovation, broadening our revenue streams and enhancing the value we deliver to all stakeholders. We are confident that these priorities position CSCS to sustain its growth trajectory and continue supporting the development of Nigeria’s capital market,” said Shehu Yahaya Shantali, managing director/chief executive officer of CSCS Plc.
Long-standing corporate tradition broken …
The maiden half-year dividend which has broken long-standing corporate tradition at CSCS signals a capital management approach that prioritises continuous, predictable shareholder returns. For years, CSCS followed an annual dividend payout model typical of many institutional market infrastructure providers. This dividend policy shift sends a strong message of CSCS leadership confidence to the wider Nigerian capital market. This also tells market participants that CSCS’s revenue diversification – spanning core clearing, depository expansion, collateral management, and data services – is generating sustainable, high-margin cash flow. For the broader market, this maiden interim dividend reshapes how investors view CSCS as an investment vehicle.
No doubt, the maiden interim dividend establishes a new playbook for corporate governance and shareholder alignment within West African market infrastructure.
Financial Highlights (H1 2026)
•Operating Profit: N10.11 billion (+186%)
•Operating Income: N18.51 billion (+9s2%)
•Profit Before Tax: N13.21 billion (+115%)
•Earnings Per Share: 190.1 kobo (H1 2025: 109.1 kobo)