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Nigerian Exchange Group Plc (NGX Group) recorded a 93.67% increase in profit after tax to ₦4.09 billion in the first quarter of 2026, driven by a surge in trading activity across the market.
According to its unaudited Q1 2026 financial results, total income rose by 70.51% to ₦7.80 billion, reflecting stronger participation from both retail and institutional investors.
Transaction fee income drives revenue growth
The standout driver of growth was transaction fee income, which climbed 189.08% to ₦5.80 billion, making it the largest contributor to NGX’s revenue during the quarter.
The increase reflects higher trading volumes and improved market turnover, supported by rising investor confidence and greater access to digital trading platforms.
Retail participation, in particular, has continued to expand as more investors use mobile and online platforms to access the stock market.
Market rally boosts investor gains and activity
The strong financial performance coincided with a broader market rally.
Investors gained approximately ₦29.83 trillion during the quarter as total market capitalisation rose 30.02% to ₦129.21 trillion by the end of March 2026.
This surge in market value contributed to increased trading activity, which directly impacts NGX’s earnings given its fee-based revenue model.
Other income lines show mixed performance
While transaction fees dominated revenue growth, other income streams recorded varied performance.
Listing fees contributed ₦0.73 billion, while treasury income stood at ₦0.63 billion. Other and rental income added ₦0.64 billion to total earnings.
However, technology and data-related income declined significantly during the period, contributing to a drop in overall other income.
Earnings from associates provide additional support
NGX also benefited from income generated by its investments in associated companies.
Share of profit from equity-accounted investees rose 241.94% to ₦2.03 billion, driven largely by contributions from Central Securities Clearing System Plc and NG Clearing Limited.
These investments continue to provide a steady earnings buffer beyond core trading-related revenue.
Operating costs rise but remain below revenue growth
Operating expenses increased by 58.62% to ₦3.85 billion, reflecting higher personnel costs and administrative expenses.
Despite the rise, cost growth remained below revenue expansion, supporting the overall improvement in profitability.
NGX performance tied to market activity
The Q1 results highlight how closely NGX’s earnings are linked to trading volumes.
As activity on the exchange increases, transaction-based income scales rapidly, driving both revenue and profit growth.
Outlook: infrastructure and global positioning
NGX Group says its next phase will focus on expanding market infrastructure, increasing participation, and improving capital formation channels.
The recent restoration of Nigeria to Frontier Market status by FTSE Russell, set to take effect in September 2026, could further boost foreign investor participation and market liquidity.
The reclassification is expected to improve Nigeria’s visibility in global indices, potentially attracting additional capital inflows and supporting sustained trading activity on the exchange.
