NIGERIA: Nigeria’s capital-market operator, Nigerian Exchange Group (NGX Group), recorded an 86.4 per cent increase in profit after tax to ₦14.7 billion in the first nine months of 2026, supported by stronger trading activity and a sharp increase in transaction-related revenue.
The company’s profit after tax rose from ₦7.9 billion in the corresponding period of 2025, while profit before tax climbed 83.3 per cent to ₦20.6 billion from ₦11.2 billion.
The results, released on October 27, highlight the financial benefits accruing to the group as activity in Nigeria’s equities market expands and more investors participate in trading.
NGX Group’s gross earnings increased by 64.8 per cent to ₦29.6 billion, while revenue rose 79.8 per cent to ₦27.3 billion.
Transaction fees were a major contributor to the performance, more than doubling to ₦20.7 billion from ₦9.7 billion a year earlier, representing growth of 112.4 per cent.
Listing fees also increased, rising 24.4 per cent to ₦3.7 billion.
The figures indicate that transaction-related income is becoming an increasingly important driver of the group’s earnings as investors trade more actively on the exchange.
Digital Participation Supports Revenue Growth
According to the group, higher trading volumes and a widening investor base contributed to the increase in transaction fees, with retail investors increasingly using digital platforms to open accounts and execute trades.
The trend points to a gradual change in how investors access Nigeria’s capital market, as digital channels make participation easier without requiring investors to depend entirely on traditional physical processes.
For the exchange operator, greater participation creates opportunities to generate more revenue from trading activity and other market services.
However, the sustainability of this growth will depend partly on whether increased participation translates into consistent market activity rather than a temporary surge driven by rising share prices.
Operating expenses increased 56.8 per cent to ₦14.7 billion, slower than the growth in gross earnings.
Consequently, NGX Group’s cost-to-income ratio improved to 49.7 per cent from 52.3 per cent, while operating profit rose 73.5 per cent to ₦14.9 billion.
The group also reported a 69.6 per cent increase in its share of profits from associates to ₦5.7 billion, driven primarily by Central Securities Clearing System Plc.
Market Expansion Creates Opportunities
The performance comes against the backdrop of a strong rally in Nigerian equities in 2026.
NGX Group reported that the All-Share Index had gained 61.43 per cent year-to-date as of September 30, while equity-market capitalisation increased from ₦99.38 trillion at the end of December 2025 to ₦163.10 trillion.
That represented an increase of ₦63.72 trillion in the market value of listed equities.
The expansion has increased the value of investors’ holdings and created a more active environment for brokers, market operators and other financial-services businesses.
However, rising market capitalisation does not automatically translate into equivalent increases in the wealth of every investor. Individual outcomes depend on the securities held, their purchase prices and subsequent market movements.
NGX Group’s results also do not, by themselves, establish that all listed companies are enjoying stronger earnings.
The group’s own performance reflects its position as an operator providing market infrastructure and services, allowing it to benefit from increased trading even when individual companies experience different financial outcomes.
Shareholders’ equity stood at ₦61.1 billion at the end of September, while total assets were ₦79.1 billion.
The group paid ₦8.2 billion in dividends during the nine-month period, an increase of 86.7 per cent.
What it means: The results provide evidence that the expansion of Nigeria’s capital market is generating stronger earnings for its operator. The next question is whether increased investor participation and trading activity can be sustained beyond the current market rally.
