NASD Targets Sustainable Profitability, Dividend Payout to Shareholders

Kayode Tokede

The Chairman of Nigeria’s premier Over-the-Counter (OTC) Exchange, National Association of Securities Dealers (NASD) PLC,  Mr. Kayode Falowo, at the company’s 11th Annual General Meeting (AGM) in Lagos stated that the board and management had taken steps to address the concerns expressed by the shareholders on improving financial performance and service offerings.

He revealed that as at September 20, 2024, the NASD Securities Index had  increased from 927.47 in December 2023 to 2,227.73 to date, indicating a growth of 140 per cent.

“In the same period, the market capitalisation increased by 143 per  cent from 1.26 trillion to over 3 trillion. The  Value of traded securities also grew from 37.58 billion to 53.5 billion,  representing a growth of 42.5per cent over the period of 38 weeks. In addition, the number of deals executed in the 38 weeks is 5,821 as compared to 3,838 deals throughout 2023,” he revealed.

He disclosed that the management is projecting to achieve a net income of about N400 million by the end of 2024, which is a significant improvement from the N69.6 million loss recorded as at December 31, 2023.

“I wish to inform shareholders that the Board has taken steps to enhance our service offering through the introduction of new products and services. I am pleased to note that the Securities and Exchange Commission (SEC) has approved our Digital Securities solutions initiative which will enable participants to trade digital securities on the NASD.

“We believe this will attract the younger generation in Nigeria and other parts of the world to our market. We have also deployed our Mobile App and participants in the market have full digital access to our services.

“Secondly, we have recently received approval from the regulator to trade Commercial Papers on our platform. This is a game changer that was secured through diligent and purposeful engagement between SEC and our Management team.

“We seize this opportunity to thank the SEC for its willingness to encourage new initiatives by the NASD as we look forward to receiving its blessings on other outstanding initiatives that are designed to drive the volume and value of trades on the NASD platform,” he added.

Falowo added that ” it is in a close engagement with major participants in the creative industry and expected to commence issuance of products that would position the NASD as a platform for aggregating capital to fund this critical sector and contribute to the nation’s economy.”

Speaking to journalists on the recent improvement, the Managing Director /CEO, NASD, Mr. Eguarekhide Longe said the management had embarked on diversification of the market since 2022 and it has started bearing fruit. It’s important to know that building a market platform is not as straightforward as many people will think.

“ There is a reduced loss position, and it is important to understand that the loss position for 2022 was mitigated by tax reduction and that was not the case with 2023

He added NASD management recognized digital platforms, stating that most of the investors have keen into these devices, which provides a lot of flexibility in their access to the market.

“ Convenience is provided by some of the touch points that we have. We have provided a mobile app,  a digital securities platform, which will be giving birth. Before  the end of this year, we will see the first issuances. There are advantages working with Blockchain technology to actually provide liquidity for some very special segments,” he said.

He added that NASD had meetings with Lagos Chambers of Commerce and Industry (LCCI), Manufacturers association and Bank of Industry (BOI) to  attract SMEs.

“The future of NASD is in the growth  companies. You may call them SMEs, but I do like to call them growth companies and you will see that expanding the market proposition of our market,” he added. 

The General Secretary of the Independent Shareholders Association of Nigeria (ISAN), Mr. Chibuzor Eke welcomed the new directors, stressing on improved performance this year on profit generation and dividend.

He urged shareholders to be patient with the management, while calling on them to be effective in the management of cost.