NASD Plc Seeks Revenue Growth as Trading Volume Surges

NASD Plc is seeking to strengthen and diversify its revenue base as it responds to a sharp increase in activity on its over-the-counter securities market.

The company’s trading volume rose by 370.81 per cent to 14.03 billion shares, while market capitalisation increased by 105.83 per cent to ₦2.12 trillion during the period under review. The figures highlight the expansion of activity on the exchange and the opportunity to generate greater value from its growing market.

Despite the rise in trading activity, NASD is facing the challenge of translating market growth into stronger earnings. Its revenue remained broadly flat at ₦1.12 billion, while profit after tax declined by 36 per cent to ₦263.4 million. Fee and commission income also fell by 15 per cent to ₦915.9 million, although interest income increased by 237 per cent to ₦206.9 million.

Speaking at the company’s 13th Annual General Meeting, NASD Chairman Olayimikah Bolo said the exchange’s priorities include market deepening, enterprise development, capital formation, digital innovation, increased investor participation and strategic partnerships.

NASD’s diversification strategy extends beyond its traditional role as a platform for trading securities of unlisted public companies. The company is developing additional channels through its commercial paper and digital securities initiatives, as well as the NASD Enterprise Portal and other platforms designed to support businesses seeking capital.

The exchange has also indicated interest in expanding opportunities in areas such as digital securities backed by real-world assets and other innovative capital-market products. These initiatives are intended to broaden NASD’s business model and create additional sources of income.

The company is also preparing for a rights issue, which is expected to provide additional capacity to execute its growth plans, improve market liquidity and support the development of its wider capital-formation ecosystem.

As trading activity continues to grow, stakeholders will be watching to see whether NASD can convert the expansion of its market into sustainable revenue, improved profitability and stronger long-term value for shareholders.