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The short answer
To convert an old paper share certificate into electronic shares, a process called dematerialisation, you lodge the certificate with a stockbroker who has opened a CSCS account and CHN for you; the broker sends it to the company's registrar, who checks it against the register and credits the shares to your CSCS account. Until then you cannot sell those shares on the NGX.
Many Nigerians hold share certificates from public offers of past decades, kept in a drawer or inherited from a parent. Trading on the Nigerian Exchange (NGX) today is electronic: shares sit in an account at the Central Securities Clearing System (CSCS). To sell, receive electronic bonuses or simply see the holding with your other shares, the paper must be converted. This guide explains the process and what to prepare.
What dematerialisation means
Dematerialisation is the conversion of paper share certificates into electronic holdings recorded at CSCS. The certificate is cancelled and the same number of shares is credited to your CSCS account, identified by your Clearing House Number (CHN). Your ownership does not change; only the form in which it is recorded.
Two organisations are involved. The company's registrar keeps the register of shareholders and confirms the certificate is valid and the name matches. CSCS holds the electronic record once it is credited. Your stockbroker sits between you and both.
Before you start
- A broker and a CHN. CSCS says you get a CHN by opening an account with a stockbroker. If you do not have one, start with how to open a CSCS account.
- The original certificate. Photocopies are not enough to convert; keep a copy for yourself.
- Matching names. The name on the certificate should match your ID and the name on your CSCS account. If your name has changed, for example after marriage, expect to provide evidence such as a sworn affidavit or marriage certificate.
- Valid ID, BVN and bank details, which brokers and registrars use to confirm identity.
The process, step by step
- Contact your broker and say you want to dematerialise certificates. Ask for its form and document list.
- Complete the form, listing each certificate: company, certificate number and number of shares.
- Sign as on the register. Some brokers ask for your signature to be confirmed by your bank.
- Hand the original certificates to the broker and get a signed acknowledgement listing each one.
- The broker sends them to each company's registrar for verification.
- The registrar checks the certificate and signature against its register and, if all is in order, cancels it and authorises the credit to your CSCS account.
- Check your CSCS account to confirm the shares have arrived. See how to check your CSCS statement.
Each registrar works through its own queue, so timing varies, and your broker or the registrar may charge fees. Ask both before you start, and keep the acknowledgement until the shares appear.
Shares you may not know you have
Certificates in a drawer may not show your full position. Over the years a company may have issued bonus shares, sometimes as further certificates, and dividends may be waiting. Ask the registrar for a statement of your holding under the register, not just the certificates you hold. CSCS says you can also request a global search at its Lagos or Abuja office, or through your broker, covering brokerages and registrars.
Worked example (labelled)
Example only. You have a certificate for 2,000 shares from an old public offer. The registrar's statement shows the company later made two 1-for-4 bonus issues. After the first you hold 2,000 + 500 = 2,500 shares; after the second, 2,500 + 625 = 3,125 shares. You ask for all 3,125 to be credited to your CSCS account, not only the 2,000 on the certificate. See bonus issues explained.
Special cases
- Lost certificate
- Ask the registrar about its replacement process, which usually involves an affidavit and an indemnity before the shares can be credited.
- Deceased holder
- The estate must transfer the shares first. See shares of a deceased person.
- Company merged or renamed
- The registrar of the successor company handles the holding; ask which registrar now keeps the register.
- Unclaimed dividends
- Complete the e-dividend mandate at the same time. See unclaimed dividends.
What to check first
- You have a broker account and your CHN.
- The names on certificates, ID and CSCS account match, or you have evidence of a change.
- You know each company's current registrar.
- You have a signed list of every certificate you handed over.
Why it is worth doing now
Paper certificates can be lost, damaged or stolen, and claims become harder as years pass and records move between registrars. Once shares are in your CSCS account, you can see them in one place, sell through any broker after a transfer, and receive bonus shares electronically. It also makes life much easier for your family if they ever need to deal with your estate, because the holding is recorded against your CHN rather than on paper that has to be found and verified.
Where Pryme fits
Pryme does not hold shares. Once your shares are electronic, dividends can be paid to a bank account in your name, including a Pryme account, and a verifiable statement from VerifyDoc.ai shows what was received.
Questions people ask
How do I convert my share certificate to CSCS?
Lodge the original certificate with your stockbroker, who sends it to the company's registrar for verification and credit to your CSCS account under your CHN.
Can I sell shares with a paper certificate in Nigeria?
Not on the NGX until the shares are dematerialised and credited to your CSCS account.
What if my name on the share certificate is different?
Provide evidence of the change, such as a sworn affidavit or marriage certificate, as the registrar asks.
How long does dematerialisation take?
It depends on the registrar's verification. Ask your broker and the registrar for their current timelines.
Sources
- CSCS: Frequently asked questions · accessed Oct 2026
- BusinessDay: Explainer, steps for shareholders to get unclaimed dividends, 7 Dec 2022 · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.