VFD Group Raises Concerns Ahead of NASD’s 11th AGM

Vanessa Obioha

As NASD PLC prepares for its 11th Annual General Meeting (AGM), the exchange is under intense scrutiny from its shareholders, particularly VFD Group. The investment company, known for its active role in the Nigerian capital market, has raised significant concerns about NASD’s governance structure and financial health.

In recent years, NASD has struggled with profitability, posting losses of N79 million in 2022 and N69 million in 2023. VFD Group’s concerns extend beyond these financial difficulties. The group has highlighted NASD’s reliance on delisting fees as a major revenue source, which they view as troubling. Last year, a significant portion of NASD’s earnings came from VFD’s own delisting, and there are indications that another substantial delisting could occur this year.

VFD Group’s stance highlights the need for NASD to shift its focus from profiting off companies exiting the market to attracting new listings and expanding its platform. With the AGM approaching, all eyes are on how NASD’s management will address these issues and whether they can present a clear strategy for the exchange’s future.

The upcoming AGM is expected to be a pivotal moment for NASD, as stakeholders await answers to the pressing questions raised by VFD Group. The meeting will not only determine the re-election of directors but also set the tone for NASD’s path forward in a challenging financial landscape.