NGX nearly doubles profit as transaction fee income climbs 189%

The Nigerian Exchange Group Plc (NGX Group) nearly doubled its profit in the first quarter of 2026, as a surge in trading activity drove transaction fee income up 189.08%.

Profit after tax rose by 93.67% to ₦4.09 billion ($2.98 million) in Q1 2026, according to its Q1 2026 unaudited financial statements. Total income climbed 70.51% to ₦7.80 billion ($5.67 million).

The growth was driven primarily by transaction fee income, which surged 189.08% to ₦5.80 billion ($4.22 million), making it the largest contributor to the group’s revenue.

The spike reflects stronger trading activity on the exchange, buoyed by improved investor sentiment, rising retail participation via digital platforms, and higher market turnover.

Investors gained ₦29.83 trillion ($21.69 billion) on the exchange in the first quarter, as market capitalisation rose 30.02% to ₦129.21 trillion ($93.98 billion) by March 31, 2026.

While transaction fees powered growth, other income lines showed mixed performance.

Technology and data-related income, captured under other income, also fell by 75.41%.

Beyond core operations, earnings were supported by income from associates, particularly its stake in the Central Securities Clearing System Plc and NG Clearing Limited.

Share of profit from equity-accounted investees rose 241.94% to ₦2.03 billion ($1.48 million).

Rising costs

Operating expenses increased by 58.62% to ₦3.85 billion ($2.80 million), driven by higher personnel costs and administrative spending, but remained well below revenue growth.

NGX’s Q1 performance underscores how its earnings are linked to trading volumes. The near tripling of transaction fees shows that when market activity rises, the exchange’s revenue and profitability scale.

“This next phase is about deepening momentum. Our priority is to scale infrastructure, broaden participation, and unlock new pathways for capital formation,” Temi Popoola, group managing director/chief executive officer, said during the Group’s annual general meeting (AGM) on Wednesday.

Part of this next phase includes the recent restoration of Nigeria to Frontier Market status by FTSE Russell, reintegrating the country into global investment indices and potentially unlocking new capital inflows and deepening market participation.

The reclassification will take effect from September 2026.

“This milestone reflects the strength of collaboration across Nigeria’s capital market ecosystem, but importantly, the deliberate efforts to strengthen the underlying market infrastructure that supports efficient trading, transparency, and investor access,” Popoola added.