Nigeria’s NASD Doubles Market Value as Profit Falls 36%
NIGERIA · MARKETS
Key Facts
- —What is NASD Nigeria’s over-the-counter securities exchange. It trades shares in companies that are not listed on the main Nigerian Exchange.
- —What happened Its thirteenth annual general meeting, reported between 11 and 14 September 2026.
- —The good number Market capitalisation more than doubled, up 105.83% to ₦2.12 trillion, about US$1.60 billion.
- —The bad number Profit after tax fell 36% to ₦263.4 million, roughly US$198,000, on flat revenue.
- —The people Arese Ugwu was appointed managing director, subject to approval by the Securities and Exchange Commission. Dr Ore Sofekun became acting chair.
- —What comes next Capital formation, digital securities and commercial paper, funded partly by a rights issue.
Nigeria’s second exchange doubled in size last year and earned a third less for doing it.
NASD OTC Securities Exchange told its thirteenth annual general meeting that market capitalisation more than doubled in 2025, to ₦2.12 trillion. Profit after tax fell 36% over the same period, and a new managing director was appointed.
What an Over-the-Counter Exchange Is
Most countries have one main stock exchange. Nigeria has a second market for securities that are not listed on the Nigerian Exchange.
NASD trades shares in unlisted public companies, along with commercial paper and other instruments.
Companies use it when they want a regulated market for their shares without the obligations of a full listing.
The number of admitted securities rose from 44 to 46 over the year.
The Numbers From the Meeting
Market capitalisation rose 105.83% to ₦2.12 trillion, about US$1.60 billion, from ₦1.03 trillion, roughly US$776 million, a year earlier.
Trading volume rose 370.81% to 14.03 billion shares. The NASD Securities Index gained 18.02% to 3,543.74.
Profit after tax fell 36% to ₦263.4 million, some US$198,000. Revenue was flat at ₦1.12 billion, about US$843,000.
Fee and commission income fell 15% to ₦915.9 million, roughly US$690,000, while interest income rose 237% to ₦206.9 million, some US$156,000.
All of these are NASD’s own figures, presented by NASD at its own meeting. Conversions use the official window rate of ₦1,328 to the dollar on 14 September 2026.
A Market That Grew While Its Operator Earned Less
A doubling in market value with a fall in fee income points to where the growth came from.
Fees depend on the value of trades executed. Market capitalisation depends on the price of what is admitted, whether or not it changes hands.
Interest income rising 237% suggests the exchange earned more from holding cash than from running a market.
That is the gap the incoming management has to close.
New Leadership
Arese Ugwu was appointed managing director, subject to approval by the Securities and Exchange Commission. PwC ran the executive search.
She replaces Chinwendu Ekeh, who had been acting managing director.
Dr Ore Sofekun became acting chair following the departure of Olayimikah Bolo.
A permanent chief executive and a permanent chair are both still pending regulatory and board confirmation.
The Digital Securities Platform Already Exists
NASD received Securities and Exchange Commission approval for a blockchain-based securities platform in January 2024.
The NASD Digital Securities Platform, built with Blockstation, was launched at the end of July 2026.
The first public offering on it was targeted for early September 2026.
The platform is therefore live rather than planned, which changes what the exchange is now asking investors to fund.
Commercial Paper Is the Growth Market
Commercial paper is short-term corporate borrowing, sold at a discount and repaid at face value.
PwC put the Nigerian commercial paper market at about ₦1.066 trillion, roughly US$803 million, in the twelve months to June 2025. That came across 75 issuances.
That was a 70% rise in value on the previous year, and an 11% fall in the number of issues. Fewer, larger papers.
Financial services accounted for 62% of the value and manufacturing 27%.
NASD’s own rules require every paper admitted to be registered first with the Securities and Exchange Commission and held in dematerialised form.
Why Nigerian Companies Borrow This Way
Nigerian bank lending rates have been high through the current monetary tightening cycle.
Commercial paper lets a company with a good name borrow directly from investors for a year or less. It is usually cheaper than a bank loan.
The risk sits with the investor rather than with a bank, and the papers are not covered by deposit insurance.
Growth in that market is a sign of expensive bank credit as much as of a deepening capital market.
What to Watch
Securities and Exchange Commission approval of the managing director appointment.
The terms and timing of the rights issue.
First trades on the digital securities platform, which will show whether the July launch has customers.
And next year’s fee income, which is the number that tells you whether the doubling in market value was real activity.
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Frequently Asked Questions
What is NASD?
Nigeria’s over-the-counter securities exchange, trading shares in companies not listed on the Nigerian Exchange.
What did NASD report?
Market capitalisation up 105.83% to ₦2.12 trillion, about US$1.60 billion, and profit after tax down 36% to ₦263.4 million.
Who is the new managing director?
Arese Ugwu, appointed subject to Securities and Exchange Commission approval. She replaces acting managing director Chinwendu Ekeh.
Is the digital securities platform new?
No. Approval came in January 2024 and the platform launched at the end of July 2026, built with Blockstation.
How big is Nigeria’s commercial paper market?
PwC reported about ₦1.066 trillion, roughly US$803 million, across 75 issuances in the twelve months to June 2025.
Are these figures independent?
No. The exchange’s operating numbers are NASD’s own, presented at its annual general meeting.
Sources: NASD OTC Securities Exchange, PwC Nigerian Capital Markets Update 2025, BusinessDay, ThisDay, Leadership, Nairametrics.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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