The Nigerian Exchange Group Plc (NGX Group) has pushed its earnings nearly to a two‑fold increase in the first quarter of 2026, thanks to a dramatic rise in trading activity that bolstered transaction fee income by a staggering 189 %.
After tax profit climbed 93.67 % to ₦4.09 billion (approximately US$2.98 million) in Q1 2026, according to the group’s unaudited statements for the period. Total income jumped 70.51 % to ₦7.80 billion (US$5.67 million).
The surge was predominantly fueled by transaction fee revenue, which surged 189.08 % to ₦5.80 billion (US$4.22 million), emerging as the single largest contributor to the group’s top line.
This sharp increase reflects intensified trading on the exchange, driven by a more positive market outlook, greater retail participation through digital platforms, and higher overall market turnover.
Investors generated a total gain of ₦29.83 trillion (US$21.69 billion) on the exchange during the first quarter, as market capitalisation rose 30.02 % to ₦129.21 trillion (US$93.98 billion) by March 31 2026.
While transaction fees propelled growth, other income streams displayed mixed performance.
The NGX Income Engine
- Total Income: ₦7.80 billion (+70.5 % YoY)
- Transaction Fees: ₦5.80 billion (74.3 % of total)
- Listing Fees: ₦0.73 billion (9.4 % of total)
- Treasury Income: ₦0.63 billion (8.1 % of total)
- Other & Rental Income: ₦0.64 billion (8.2 % of total)
Source: NGX Group Q1 Unaudited Financial Statements
Technology‑related and data‑centric income, classified under other income, slipped by 75.41 %.
Drivers & Drags: NGX Other Income
- Total Other Income: ₦579.7 million (down 43.0 % vs Q1 2025)
Beyond core operations, earnings received a boost from income generated by associate companies, most notably NGX’s holdings in the Central Securities Clearing System Plc and NG Clearing Ltd.
Share of profit attributable to these equity‑accounted investees jumped 241.94 % to ₦2.03 billion (US$1.48 million).
Rising Costs
Operating expenses rose 58.62 % to ₦3.85 billion (US$2.80 million), largely driven by elevated personnel costs and administrative spending, yet remaining well below the pace of revenue growth.
- Total Operating Expenses: ₦3.85 billion (+58.6 % vs Q1 2025)
The Q1 performance highlights what happens when market volumes increase: transaction revenue—and consequently profitability—grows in tandem.
“This next phase is about deepening momentum. Our priority is to scale infrastructure, broaden participation, and unlock new pathways for capital formation,” stated Temi Popoola, the group’s managing director and chief executive officer, during the annual general meeting (AGM) on Wednesday.
A key element of this strategy is the recent reinstatement of Nigeria’s status as a Frontier Market by FTSE Russell, reintegrating the country into global investment indices and potentially unlocking fresh capital inflows while deepening market participation.
The transition 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.
Source credit: TechCabal
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