NASD targets expansion into digital securities, commercial papers

NASD Plc is positioning for its next phase of growth by expanding beyond traditional securities trading into a broader capital-formation ecosystem to create diversified revenue streams and deliver long-term value to investors.

The strategy reflects a growing need for private capital to finance Nigeria’s economic development across critical sectors, including agriculture, energy, infrastructure, manufacturing, technology, real estate, and the creative economy.

The firm noted that its alternative-market infrastructure places it in a strong position to connect businesses seeking capital with investors searching for new opportunities.

Speaking at the company’s 13th Annual General Meeting, Chairman of the company, Olayimikah Bolo, said NASD’s 2026 priorities would focus on market deepening, enterprise development, capital formation, digital innovation, increased investor participation, and strategic partnerships.

“The company will continue to strengthen governance, enterprise risk management, and operational resilience as it builds the platform for its next stage of development,” Bolo said.

The firm’s recent performance provides a strong foundation for this pivot. During the review period, market capitalisation increased by 105.83 per cent to N2.12tn, while trading volume surged 370.81 per cent to 14.03bn shares. The NASD Securities Index also gained 18.02 per cent to 3,543.74, as admitted securities rose from 44 to 46.

However, revenue remained flat at N1.12bn, while profit after tax declined by 36 per cent to N263.4m, highlighting the need to translate market expansion into stronger earnings.

Fees and commission income declined by 15 per cent to N915.9m, though interest income rose sharply by 237 per cent to N206.9m to bolster overall revenue.

Against this backdrop, NASD is preparing to undertake a Rights Issue to provide additional capacity to execute its growth strategy, deepen liquidity, and diversify its earnings base.

In her statement in the 2025 Annual Report, Acting Managing Director, Chinwendu Ekeh, said: “NASD is building additional channels through which that enlarged market can be monetised, while the company is also targeting expansion in commercial paper and digital securities.”

At the AGM, NASD announced the appointment of Arese Ugwu as the new Managing Director, subject to ratification by the Securities and Exchange Commission. Bolo noted that the appointment followed an executive search process conducted by PwC.

Ugwu stated that her immediate focus would be on translating market growth into stronger commercial performance by attracting quality issuers, deepening liquidity, and expanding distribution.

“Nigeria has extraordinary businesses that need capital and investors searching for opportunities to create wealth. NASD has an opportunity to become one of the country’s most important platforms for connecting the two,” Ugwu said.

Bolo, who stepped down as Chairman after helping to stabilise the board during the transition period, announced Dr Ore Sofekun as acting Chairman while encouraging shareholders to support the forthcoming Rights Issue.

“I am still on the board. I only stepped down as the Chairman,” Bolo said.

Shareholders ratified the appointments of four non-executive directors: Dr Ore Sofekun, Obiageli Chiki-Ijegbulem, Abiola Adediran, and Zainab Sanusi Monguno, while Fatumata Soukouna Coker was re-appointed.

https://punchng.com/nasd-targets-expansion-into-digital-securities-commercial-papers/