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Shares Saver is powered by Crown Capital Limited, a stockbroker registered and regulated by the Securities and Exchange Commission (SEC) of Nigeria. All securities transactions, including the purchase and sale of shares, are carried out through Crown Capital Limited. Shares Saver does not make any recommendations to buy, sell or otherwise deal in investments. Investors make their own investment decisions. The services and securities provided by Shares Saver may not be suitable for all customers and, if you have any doubts, you should seek advice from an independent financial adviser. The value of investments can go up as well as down and you may receive back less than your original investment.

  1. Home
  2. How Employee Funds Are Protected

How Employee Funds Are Protected in Nigeria

The regulatory safeguards, structural protections, and independent oversight mechanisms that protect employee share scheme participants and their funds under a Shares Saver administered scheme.

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Six Layers of Protection

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CSCS Direct Ownership Registration

Allotted shares are registered directly in each employee's name at the Central Securities Clearing System (CSCS). Ownership is held by the employee — not by the employer or Shares Saver — making shares legally independent of the financial health of either entity.

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Segregated Trust Account

Employee payroll deductions are held in a dedicated trust account under a formal trust deed, separate from the operating accounts of both the employer and Shares Saver. An independent trustee — typically a licensed financial institution — holds the account. Scheme funds cannot be accessed by the employer company or used to settle its debts.

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SEC Nigeria Regulatory Oversight

Employee share investment schemes for Nigerian listed companies are regulated by the Securities and Exchange Commission (SEC Nigeria). The scheme must be structured in accordance with SEC Rules on Share Purchase Plans and is subject to annual compliance reporting. SEC oversight provides an independent regulatory check on scheme operations.

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NGX Listing Rule Compliance

Companies listed on the Nigerian Exchange Group (NGX) must comply with NGX post-listing requirements governing employee share schemes. This includes mandatory disclosure of the scheme and its key terms in annual reports, providing transparency to all shareholders including participants.

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Independent Trustee

The scheme trust deed appoints an independent trustee responsible for holding scheme assets separately from the company. The trustee has a fiduciary duty to participants and is required to act in their interests — providing an independent check on the administration of the scheme.

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Protection Against Employer Insolvency

Segregated trust funds are not available to creditors in an employer insolvency. CSCS-registered shares are already legally owned by individual employees and are entirely outside the employer's balance sheet. In a wind-down scenario, employees retain access to their registered shares through any licensed NGX stockbroker.

Regulated by Nigerian Authorities

SEC Nigeria
NGX (Nigerian Exchange Group)
CSCS
CAMA 2020
FIRS

Frequently Asked Questions

What happens to my employee shares if my company goes into administration?

If the employer company enters administration or liquidation, employee shares that have been allotted and registered at CSCS in the employee's name are entirely unaffected — they are the legal property of the employee, not the company. Unvested shares held in the trust fund are also protected from company creditors because they are held in a segregated trust account, not in the company's own accounts. The trustee is obligated to deal with those assets in accordance with the scheme trust deed.

Is my money safe between payroll deduction and share allotment?

Yes. Employee payroll deductions are transferred to a dedicated scheme trust account within the same payroll cycle. The trust account is held in the name of the scheme trustee — not the employer company — and cannot be accessed by the employer for operating purposes. The funds are used solely for the allotment of shares to participants on the scheduled allotment date.

Who can I contact to verify my share balance independently?

Your Shares Saver participant dashboard provides real-time access to your CSCS account details, including your CHN (CSCS Holder Number) and registered share balance. You can independently verify your holdings by contacting CSCS directly at cscs.com.ng, or by approaching any licensed NGX stockbroker with your CHN.

Is Shares Saver regulated by SEC Nigeria?

Shares Saver operates as an employee share scheme administrator in compliance with SEC Nigeria rules and CSCS operational requirements. Our scheme administration processes are structured around the regulatory obligations applicable to an ESIS under CAMA 2020, SEC Rules on Share Purchase Plans, and NGX listing obligations. Contact us for full details of our regulatory status and compliance framework.

What happens to my unvested shares if the scheme is wound down?

The treatment of unvested shares on a scheme wind-down is governed by the trust deed and scheme rules established at launch. Typical provisions include: return of payroll deduction funds not yet applied to share allotment; accelerated vesting of shares already allotted; or continuation of vesting until the vesting date and then transfer of title to the employee. The specific provisions must be documented in the scheme rules and disclosed to participants at enrolment.

Related Trust & Compliance Resources

How Your Shares Are HeldWho Regulates Shares SaverEmployee Share Custody StructureRegulatory Guide NigeriaEmployee Share Plan NigeriaEmployee Share Plan FAQ

Set Up a Protected Employee Share Scheme

Shares Saver administers employee share investment schemes with direct CSCS registration, segregated trust accounts, and full SEC Nigeria compliance for listed Nigerian companies.

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