For listed Nigerian employers
How a Nigerian Listed Company Enabled Staff to Invest Monthly in Company Shares
An anonymised case study of a Nigerian listed company that launched a formal Employee Share Investment Scheme — enabling all permanent employees to invest in company shares through monthly payroll deduction.
enrolled
held for staff
take-up
Company Profile
Sector
Financial Services
Listing
NGX — Main Board
Employees
~1,200 permanent staff
Scheme type
Employee Share Purchase Plan (monthly payroll deduction)
Vesting period
3-year graded vesting (one-third per year)
Launch year
2024
Company details have been anonymised. The scheme structure and outcomes reflect real programme parameters.
The Challenge
A mid-sized Nigerian financial services company listed on the NGX had experienced a sustained increase in staff turnover at the officer and analyst levels over a three-year period. Exit interviews consistently identified compensation competitiveness — particularly the lack of a meaningful equity component — as a primary reason for departures to larger banks and international employers.
The board had considered a traditional discretionary share option scheme but concluded that a broad-based monthly savings plan — offering all permanent employees the chance to invest systematically in company shares — would deliver both retention and cultural benefits more effectively than a scheme restricted to senior management.
The Approach
The company engaged Shares Saver to design and administer an Employee Share Purchase Plan structured around monthly payroll deduction. Key design decisions included:
- •All permanent employees with at least six months of service were eligible to participate — no seniority threshold
- •Employees elected to invest between 2% and 10% of their monthly basic salary via payroll deduction
- •The company provided a 25% employer match — for every ₦100 an employee invested, the company added ₦25 to the share purchase
- •Shares were purchased at the prevailing NGX market price on the last business day of each month and registered at CSCS directly in each employee's name
- •A three-year graded vesting schedule applied to employer match shares — employees retained their own contribution shares immediately
- •A good leaver / bad leaver framework was documented in the scheme rules — retirement, redundancy, and death triggered immediate vesting of all employer match shares
Implementation
Shares Saver managed the end-to-end implementation process over an eight-week period:
| Week | Activity |
|---|---|
| 1–2 | Board resolution, scheme rules drafting, trust deed preparation with external counsel |
| 3 | SEC notification, NGX scheme disclosure filing |
| 4 | Employee communication campaign — town halls, FAQ document, offer letter distribution |
| 5 | Participant enrolment — 847 of 1,200 eligible employees enrolled (71% participation) |
| 6 | CSCS account registration for all 847 participants without an existing CHN |
| 7 | Payroll integration setup — deduction amounts confirmed with payroll team |
| 8 | First monthly deduction cycle; first share allotment; CSCS credits confirmed |
Outcomes — 12 Months After Launch
71%
Employee participation rate at launch
83%
Retention rate among scheme participants (vs 67% non-participants)
₦186M
Employee contributions invested in company shares in year one
100%
CSCS registration completion rate
0
Regulatory findings in year-one SEC annual report
4.2/5
Employee satisfaction score for the scheme benefit
The scheme delivered a measurable improvement in year-one staff retention for participants relative to non-participants. The company secretary noted that the Shares Saver platform reduced the administrative burden of monthly reconciliation from an estimated two days of manual work per month to under two hours.
“The combination of a straightforward payroll deduction model and real-time employee dashboards meant our staff understood and valued the benefit from day one. That visibility was key to achieving a 71% participation rate.”
— Head of Human Resources (anonymised)
Set up a similar scheme for your company
Speak to Shares Saver about designing and administering an employee share investment scheme for your Nigerian listed company.
Contact Us