What Is a Contract Note? Reading Your Nigerian Stockbroker's Trade Confirmation

A contract note is the written confirmation a SEC-registered stockbroker issues after buying or selling shares on your behalf on the Nigerian Exchange (NGX). It sets out the security, the quantity, the price, every charge and the settlement date of that one trade. It is the primary evidence that the trade happened and on what terms, which is why brokers issue one for every executed order and why investors are asked to keep them.

When You Receive a Contract Note

A contract note is produced once your order has actually been executed on the NGX, not when you place it. If your order is only partly filled, the note covers the part that was filled; a later fill produces another note. Most brokers now send contract notes by email or make them available in an investor portal, and some still issue printed copies on request. The format varies from broker to broker, but the information on it is broadly the same because much of it comes from the Exchange's own trade record. If you invest through a platform, the note is still issued by the executing broker; check with the platform how to view it.

What Each Field on a Contract Note Means

• Trade date: the day the order was matched on the NGX. Settlement, dividend entitlement and any tax record all count from this date or from the settlement date that follows it.
• Contract or reference number: the broker's unique identifier for the trade. Quote it if you ever query the transaction.
• Client name and account: your name exactly as it appears on the broker's records, and often your CSCS account number or Clearing House Number (CHN). The shares are registered to this CHN, so check it is yours.
• Buy or sell: which side of the trade you were on.
• Security name and ticker: the company's full name and its NGX symbol. Some companies have similar names, so the ticker is the field to trust.
• Quantity: the number of shares bought or sold in this note. Compare it with the number you asked for.
• Price: the unit price at which the trade was executed. When a single order is filled at more than one price, the note may show each fill separately or an average.
• Consideration or gross value: quantity multiplied by price, before any charges.
• Charges: the itemised costs of the trade. On a Nigerian equity trade these typically include the broker's commission, an NGX fee, a CSCS fee, an SEC fee, stamp duty and VAT on some of those items. The rates are published by NGX and by your broker and can change.
• Net amount: for a purchase, the total you pay; for a sale, the total you receive after charges.
• Settlement date: the business day on which shares and money actually change hands through CSCS. As published by CSCS, the Nigerian market moved to T+1 settlement on 1 June 2026, meaning one business day after the trade date; confirm the current cycle with your broker.
• Broker details: the broker's name, address and registration details. A legitimate note comes from a firm you can find on the SEC register.

What to Check as Soon as It Arrives

1. The ticker and quantity match the instruction you gave.
2. The price is within the range you expected for that day, or within the limit you set if you placed a limit order.
3. The charges are itemised and consistent with the fee schedule your broker gave you when you opened the account.
4. Your name and CHN are correct. A wrong CHN means the shares are being registered to someone else's account.
5. The settlement date is a business day and matches the settlement cycle your broker told you to expect.

Why You Keep Contract Notes

A contract note is the only document that records what you paid for a particular parcel of shares. Your CSCS statement shows what you hold today, and the company's registrar knows you are on the register, but neither records the cost of each purchase. That cost history matters in several situations:

• Tax records: rules on the taxation of share disposals in Nigeria depend on your circumstances and can change. Whatever the rule at the time, the purchase price on the contract note is the figure any calculation starts from, so keep the notes and speak to a tax professional about how they apply to you.
• Disputes with a broker: the note is your evidence of the agreed quantity, price and charges.
• Reconciling your holdings: if your CSCS statement does not match what you believe you own, the notes show which trades should have settled.
• Tracing shares years later: people who inherit or rediscover old holdings find the search much faster when contract notes survive, because they identify the broker, the CHN and the company.

Contract Note vs CSCS Statement vs Registrar Record

These three documents are not interchangeable. The contract note records a single transaction. The CSCS statement is a snapshot of every holding under your CHN at a point in time. The registrar's record is the company's own register of who owns its shares, which determines who receives dividends and AGM notices. A complete set of records for one shareholding usually means all three.

Contract Notes in Nigeria: FAQs

Is a contract note the same as a share certificate?

No. A share certificate is evidence of ownership issued by the company or its registrar, and most Nigerian holdings are now held electronically in CSCS rather than on paper. A contract note is evidence of a transaction. After a purchase settles, your ownership is shown on your CSCS statement and on the company's register; the contract note remains the record of what you paid.

How long should I keep contract notes?

Keep them for as long as you hold the shares and for a period after you sell, because the purchase price may be needed for tax or dispute purposes years later. Ask a tax professional about any minimum record-keeping period that applies to you.

What if my broker did not send a contract note?

Ask for it. A broker executing trades for clients is expected to confirm each trade in writing. If you cannot get a satisfactory answer, the SEC and the NGX both handle investor complaints about dealing members.

Why are there several prices on one contract note?

An order for a large quantity can be matched against several sell orders at different prices in the NGX order book. The note then lists each fill, or shows an average price with the total consideration. Either way the quantity and net amount should add up to what settled.

Does a contract note show my CSCS number?

Usually, yes. Most brokers print the client's CSCS account number or CHN on the note because that is the account the shares settle into. If your note does not show it, your broker can confirm the CHN the trade was settled against.