Yemisi Izuora
The Central Securities Clearing System (CSCS) has highlighted technology’s role in deepening Nigeria’s capital market.
This came to the fore at the 2024 annual conference of the Capital Market Correspondents Association of Nigeria (CAMCAN) in Lagos.
The Divisional Head, Business Services and Client Relations, CSCS Plc, Mrs Onome Komolafe, said this during a panel session focused on the theme: ‘Bank Recapitalisation: Bridging the Gap Between Investors and Issues in the Nigerian Capital Market.’
Komolafe noted that the Nigerian Central Securities Depository has launched several tech interfaces to ease transactions in the capital market.
She said, “In terms of technology, in the last five years, CSCS has deployed a lot of Application Programming Interfaces (APIs.) Let me not bore you about what APIs are, but a lot of infrastructure that enables brokers to be able to interface with the market without necessarily coming to CSCS.
“Today, you can do your account opening for your client from the comfort of your office. You don’t have to come to CSCS for most of this because different portals have been deployed. If you want to submit documents to CSCS, you don’t have to be there. So, we’ve deployed a lot of APIs to the market for self-service options.”
On the level of acceptance of the deployed technological innovations, Komolafe stated that the market has been receptive even as they were seem to be some concerns on the part of the CSCS over attempts to shorten the settlement time.
“This is a market that started at T+5 but today we are T+3, and we’re engaging actually to reduce the settlement period. So first, we’ll talk about much of the reduction in the settlement cycle that has happened.
“You will see that we can’t do much if we don’t have the right technology and CSCS has deployed technology. The market has accepted most of the technology from account opening from a direct cash settlement, reduction of settlement cycles, cybersecurity, and everything that CSCS has brought to the market has been accepted, and that’s why we see this evident transformation in the market.”
On the efforts of the CSCS to educate market players, Komolafe said, “We are also very focused in terms of educating the market. CSCS is the number one infrastructure when it comes to cybersecurity information. We’ve had two international conferences back to back in the last two years in terms of what we have done, and then also for ensuring that there’s some education and assistance to the market. We also have deployed various service engagements, like our chat box, where you have issues. We have engagements that you want; you don’t have to physically come into CSCS.”
Earlier, the Chairman of CAMCAN, Mrs Chinyere Joel-Nwokeoma, in her welcome address, highlighted some measures to bridge the gap between issuers and investors as the recapitalisation moves of the banks go on.
She said, “The gap between these two stakeholders can be bridged through effective recapitalisation strategies that prioritise transparency, disclosure, and regulatory compliance. To achieve this, it’s my candid view that we must work together to, strengthen corporate governance and risk management practices in banks.
“Enhance disclosure and transparency requirements for issuers. Develop innovative financial instruments that cater to the needs of both investors and issuers and foster a culture of collaboration and trust between stakeholders.”