If you want to own shares listed on the Nigerian Exchange, you need a CSCS account. It sounds bureaucratic, and the paperwork can be, but the idea behind it is simple.

What CSCS is

CSCS is Nigeria's central securities depository: the organisation that holds shares electronically on behalf of investors and settles trades on the Nigerian Exchange. Instead of paper share certificates, your shares are recorded in an account in your name.

The two numbers you will get

  • Clearing House Number (CHN). Your unique investor identity across the capital market. You keep the same CHN even if you use several stockbrokers.
  • CSCS account number. The account opened through a specific stockbroker, where the shares you buy through that broker are held.

How you open one

Individuals do not open CSCS accounts directly. The account is opened through a stockbroker registered with the Securities and Exchange Commission, who submits your details to CSCS on your behalf.

What to have ready

  • Your Bank Verification Number (BVN)
  • Your National Identification Number (NIN) or another valid government ID
  • A recent passport photograph
  • Proof of address, such as a recent utility bill
  • Your bank account details, for payments and dividends

Requirements can vary slightly between brokers, so confirm the list before you start.

Why it matters

Your CSCS account is where your shares legally live. It is what entitles you to dividends, bonus shares and rights issues, and it protects your holdings if you later move to a different broker. It is also worth checking your CSCS statement from time to time, so you can confirm that what your broker reports matches what is recorded in your name.

The M20 way

When you join M20 Robo, we open and link your CSCS account for you as part of onboarding. Your identity is verified once through your BVN and NIN, and the account is set up in your name, so the shares in your portfolio are always recorded as yours.

This article is for general information only and is not investment advice. Investments can go down as well as up. Speak to a qualified adviser about your own circumstances.