CSCS propels Nigerian capital market with innovative solutions

In this insightful conversation, Haruna Jalo-Waziri, Managing Director and CEO of Central Securities Clearing System Plc (CSCS), reflects on his transformative journey since taking the helm in 2017. Under his leadership, CSCS has undergone significant changes, leveraging technology to enhance efficiency and reduce manual interactions. Jalo-Waziri shares insights into the company’s remarkable progress, highlighting the standardization of market infrastructure, automation of services, and implementation of innovative solutions. He emphasizes the importance of people in driving innovation and efficiency, fostering a culture of psychological safety, and building a high-performance environment. As CSCS continues to evolve, Jalo-Waziri discusses the organization’s vision for the future, its approach to risk management, and the impact of government policies on its growth. With a focus on talent development, innovation, and integrity, CSCS is poised to remain a key player in the Nigerian capital market. Jalo-Waziri’s leadership has been instrumental in driving this transformation, and his thoughts offer valuable insights into the company’s journey and future prospects. His thoughts provide a unique glimpse into the mind of a visionary leader shaping the future of CSCS and the Nigerian capital market.

We’re building a platform-based infrastructure that allows other stakeholders to connect and innovate, the goal is to keep solving real problems and adding value through technology

Looking back on your tenure as CEO since 2017, what are some of the most significant achievements of CSCS and how have they impacted the Nigerian capital market?

Assessing one’s own performance is never easy, but I’d like to highlight CSCS’s transformation through my personal journey. When I joined, operations were largely manual. I remember having about 8 kilograms of paperwork on my desk, and brokers felt a need to constantly stop by to process transactions. We’ve since transformed our services, leveraging technology to enhance efficiency and drastically reduce manual interactions.

What were some of the biggest challenges you faced when you took over at CSCS, and how did you address them?

Change management was by far the biggest challenge. We had to standardize our market infrastructure to align with the best global practices. That meant deep research into international standards and applying those principles to our local context.

Can you describe the challenges CSCS faced in its operations before the transformation?

We were bogged down by the volume of paperwork from the various market participants.

The number of bodies in our offices was overwhelming, from brokers trying to access services to investors who needed support on their holdings. Connectivity with the stock exchange wasn’t seamless, and we faced operational friction across the investment community from brokers, to registrars, and custodians.

How has technology improved the way CSCS interacts with its stakeholders, such as brokers and registrars?

CSCS is leveraging technology in how it interacts with participants. We’ve built self-service portals for brokers, which means they no longer need to visit physically. For registrars, we now have an automated reconciliation solution that runs daily—end-of-day, every day.

What specific solutions have CSCS implemented to improve efficiency for custodians?

We automated the movement of assets between accounts. This process now runs automatically before trading starts, which has helped improve price discovery and compress the bid-offer spread.

How have these changes impacted the Nigerian stock exchange and the broader market?

I can say that there has been a significant improvement in market efficiency. Our systems now support multiple exchanges, and our pre-trade and post-trade optimizations have helped narrow the bid-offer price gaps across the board.

What steps have you taken to boost efficiency, reduce risk, and build investor confidence?

We’ve worked hard to eliminate friction within the system. Whether it’s for investors, issuers, the exchanges, brokers, custodians or registrars, our infrastructure now supports seamless interaction across the value chain—from pre-trade to post-trade extending beyond just processing transactions. Our objective is to build a market infrastructure that supports the growth and development of the Nigerian capital market and the broader economy.

How has CSCS grown in its clearing and settlement services, improved its approach to risk management, and strengthened relationships with regulators and market participants since 2017?

We’ve made significant improvements in how we serve the market. Our risk management framework is now more robust, and we’ve developed stronger relationships with regulators and market intermediaries. Investors and issuers now trust us more because we’ve demonstrated reliability, resilience, and transparency in our systems and processes.

What is your approach to risk management, and how does it contribute to maintaining market integrity?

For us, risk management means more than just control — it’s about ensuring transactions are processed without disruption where parties receive due value, and that there are safety nets when things go wrong. We’re always prepared to act quickly and preserve the trust of our market participants.

How do you plan to address errors and mistakes that may occur in the CSCS system?

Mistakes happen, but our priority is resolving them quickly and ensuring that no stakeholder loses value. We’ve built restitution mechanisms that reflect our commitment to service excellence.

How has your leadership style and approach to management evolved over the years, and what lessons would you say you’ve learned from that?

Over time, my leadership philosophy has evolved towards people. While technology and processes are essential, it’s people who truly drive innovation and operational excellence. I’ve focused on creating an environment where people feel safe to innovate, make mistakes, and learn.

What role do you think people play in driving innovation and efficiency in a post-trade infrastructure company?

They’re absolutely central. When you empower people to think creatively, take risks, and grow from their experiences, innovation and efficiency follow naturally. That’s been our reality at CSCS.

How do you foster a culture of psychological safety within your organization?

Psychological safety, in my view, is a fundamental enabler of high-performance teams. It starts with trust. I’ve worked to cultivate an environment where people feel secure enough to try new things—even if they fail. That trust has allowed us to build a culture rooted in experimentation, learning, and continuous improvement.

Can you elaborate on your approach to building a high-performance environment for your team?

My focus is on creating the conditions that allow people to excel. When the right structures, tools, and mindset are in place, people can accomplish extraordinary things. That’s the kind of culture we’re building—one that values innovation, agility, and accountability.

How do you balance the importance of technology and process with the need to prioritize people in your organization?

It’s quite straightforward: people come first. Technology and processes are enablers, but they only come to life through the people who operate them. My priority has always been to invest in talent—then equip them with the right tools to deliver results.

What is the key factor in achieving CSCS’s goals and objectives?

Talent—without a doubt. We need a team that can think critically, leverage technology, and deliver consistent service to our stakeholders. That’s where our future lies.

How has CSCS’s talent development and retention strategy evolved since 2017?

We’ve made people our focus. By building a psychologically safe workplace, we’ve encouraged creativity and growth. We’re still refining our retention approach, but we’ve seen strong progress. Being recognized as a great place to work is a major milestone for us.

What are some of the biggest lessons you’ve learned as a CEO of CSCS, and how have these lessons informed your leadership approach?

Two key lessons: stakeholder engagement is essential, and talent is everything. By nurturing our people, we’ve unlocked creativity and operational excellence. In today’s post-COVID world, where work has transformed, balancing creativity and efficiency is key.

What role do you see technology playing in CSCS’s future growth and development?

Technology is pivotal to our future. It’s how we’ll scale our services, reach new stakeholders, and continue delivering top-tier solutions. It’s also how we’ll remain relevant in a rapidly evolving capital market. By building a platform, we can unlock new opportunities and drive growth.

What opportunities and challenges do you foresee for CSCS in the next 2-3 years, and how will you address them?

There are plenty of opportunities, but challenges will always exist. We’re building a platform-based infrastructure that allows other stakeholders to connect and innovate. The goal is to keep solving real problems and adding value through technology.

How do you see the current government policies and regulations impacting CSCS’s growth and development?

The current policy landscape is encouraging. We have seen the passing into law of the Investment and Securities Act which fosters confidence, removes systemic risk, and creates a more attractive investment climate. That is positive as it helps expand and deepen capital market participation.

What do you envision for CSCS’s future, and how will the organization evolve in the next 5-10 years?

We’re building a resilient, high-performance institution. One grounded in innovation, integrity, and efficiency. Our future lies in being platform-agnostic and solution-driven. By bringing in younger talent and embracing fresh perspectives, we’ll continue to meet our stakeholders’ evolving needs.