Choosing the right employee share scheme provider in Nigeria matters. Here is what to look for — direct ownership, regulation, reporting, and full lifecycle support.
Your employee share scheme provider manages one of the most sensitive aspects of your company's relationship with its employees — their share ownership. Choosing the wrong provider can result in poorly registered shares, unhappy employees, and compliance problems. Here is what to look for.
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The most important question to ask any provider: do employees' shares get registered directly in their own names through CSCS — or are they held in a pooled or nominee account? Direct CSCS registration means each employee is a real, named shareholder with full ownership rights. A pooled structure means employees have a beneficial interest, but the shares are registered to the provider or a nominee. Always choose direct registration.
The provider must operate within the Nigerian regulatory framework: CAMA 2020, SEC Nigeria rules on employee share schemes, and NGX listing obligations. Ask the provider how they handle SEC notifications, how they document allotments for audit purposes, and what reporting they provide to support your company secretary's compliance obligations.
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Employees should be able to see exactly how many shares they hold, the current value, their vesting schedule, and their ownership documentation — clearly and in real time. If employees cannot easily access this information, the scheme loses credibility and engagement value.
Dividends are a core benefit of share ownership. The provider should support the process of registering each employee's bank details with the company registrar so dividends flow directly to the employee's account through the NGX e-dividend system — not through the provider as an intermediary.
Employee turnover is inevitable. The provider must have clear, documented processes for every leaver scenario: vested shares remain with the employee, unvested shares are handled per the scheme rules, and the CSCS registration is updated accordingly. Poorly managed leaver processes create legal risk and employee disputes.
Your board, auditors, and the SEC need complete, accurate records of every allotment, registration, and change under the scheme. The provider must deliver auditable reports on demand — not just at year-end.
Shares Saver qualifies on all six criteria: direct CSCS registration for every employee, Nigerian regulatory compliance, real-time employee dashboards, e-dividend support, structured leaver management, and full compliance reporting.
Avoid providers who: hold shares in a pooled structure without clear individual registration records; cannot provide clear documentation of their regulatory compliance; do not have a defined leaver management process; or cannot provide auditable reporting. These gaps create both legal risk and the potential for employee disputes about their share ownership.
Talk to Shares Saver about providing your employee share scheme administration. We manage direct CSCS registration, dividends, leavers, and compliance reporting for NSE-listed companies.
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