Paragraph 1: NASD Plc’s Resurgence and Financial Performance
NASD Plc, the operator of Nigeria’s prominent Over-The-Counter (OTC) securities exchange, has experienced a significant financial turnaround, reporting a profit after tax of N212.5 million for the first quarter of 2025. This achievement marks a stark contrast to the N32.7 million loss recorded during the same period in 2024. The company’s managing director, Eguarekhide Longe, attributed this positive shift to increased trading activity on the NASD OTC platform and the successful launch of new financial products tailored to meet the diverse needs of Nigeria’s economic sectors. This robust performance underscores the company’s strategic focus on innovation and market expansion, positioning NASD Plc as a key player in the development of Nigeria’s capital market.
Paragraph 2: Driving Growth Through Innovation and Diversification
NASD Plc’s remarkable financial performance can be attributed to its strategic commitment to innovation and product diversification. The company has implemented a multi-platform approach, operating five distinct trading platforms, including the flagship NASD OTC Securities Exchange, the NASD Enterprise Portal for growth companies, the NASD Commercial Paper Listing platform, the NASD Digital Securities platform, and the NASD Real Estate Portal. This diversified portfolio allows NASD Plc to cater to a wider range of businesses and investors, enhancing market liquidity and providing alternative financing options. By focusing on underserved sectors such as real estate, small and medium enterprises (SMEs), and cooperative societies, NASD Plc is effectively bridging the financing gap and contributing to the growth of the Nigerian economy.
Paragraph 3: Market Expansion and Increased Trading Activity
The OTC market operated by NASD Plc has experienced significant growth in recent years, characterized by a substantial surge in both trading volume and value. In 2024, the NASD OTC Securities Exchange witnessed a remarkable 127.31% year-on-year increase in the number of deals, accompanied by a 176.72% rise in the value of trades. This impressive growth trajectory signals heightened investor interest and increased market activity, further bolstering confidence in the OTC market’s potential. The NASD Securities Index, which tracks the performance of the OTC market, also demonstrated substantial growth, appreciating by 223.75% to close at 3,002.68 points in December 2024, reflecting the overall positive trend.
Paragraph 4: Future Outlook and Product Development
NASD Plc anticipates sustaining its growth momentum throughout 2025, driven by plans to roll out new product offerings pending regulatory approval from the Securities and Exchange Commission (SEC). These forthcoming products, which include digital securities and other innovative investment vehicles, are designed to further democratize access to the capital market and provide flexible funding solutions to sectors traditionally underserved by traditional banks and exchanges. The company’s proactive approach to product development and market expansion positions it for continued success and further solidifies its role in shaping the future of Nigeria’s capital market.
Paragraph 5: Expert Analysis and Market Significance
Financial analysts view the steady increase in NASD’s profitability as a clear indication of a maturing OTC market, characterized by growing investor confidence and enhanced liquidity. This positive development holds significant implications for the overall development of Nigeria’s capital market and the broader economy. The expansion of the OTC market provides alternative investment avenues, promotes financial inclusion, and facilitates access to capital for businesses across various sectors, contributing to economic diversification and growth. NASD Plc’s success story underscores the potential of the OTC market to play a pivotal role in driving economic progress.
Paragraph 6: Regulatory Compliance and Market Integrity
NASD OTC Exchange has actively called on public limited companies to comply with SEC regulations mandating that securities of unlisted public companies be traded exclusively on SEC-registered OTC exchanges. This emphasis on regulatory compliance aims to strengthen market integrity, enhance investor protection, and promote transparency within the OTC market. By ensuring adherence to regulatory guidelines, NASD Plc is working to foster a stable and secure investment environment that fosters investor confidence and contributes to the long-term sustainability of the Nigerian capital market. This proactive stance strengthens the market and reinforces its role as a vital component of the financial ecosystem.
