NASD Plc’s revenue remained above ₦1.1 billion in 2025, but profit fell sharply as fee income declined and operating expenses increased, leaving the Nigerian over-the-counter (OTC) exchange to seek fresh capital for technology, working capital and market-development investments.
NASD reported ₦1.12 billion in total revenue for 2025, down 1.3% from ₦1.14 billion in 2024. Profit after tax fell 35.6% to ₦263.4 million from ₦408.8 million.
The company is seeking to raise ₦12 billion through a rights issue of 480 million shares at ₦25 each. More than two-thirds of the net proceeds is earmarked for portfolio investments and future market-development activities, while ₦3.25 billion is allocated to working capital and ₦300 million to cloud trading systems and support.
Fees and commissions—NASD’s core transaction-related income stream—fell by almost ₦160 million in 2025. Interest income more than tripled to ₦206.9 million, cushioning the decline but also showing that the earnings base was increasingly supported by returns on cash and investments rather than core market activity.
Growth Slows After 2024
NASD’s 2024 numbers marked a step change: total revenue more than tripled from ₦338.1 million in 2023 to ₦1.14 billion, while profit after tax almost tripled to ₦408.8 million. The 2025 results show that the exchange retained much of that higher revenue scale but could not sustain the same rate of profitability.
Employee expenses rose 29.4% to ₦360 million and administrative and operating expenses rose 37.1% to ₦345.5 million. Together, those two cost lines increased by about ₦175 million—more than offsetting the increase in interest income. The result was a fall in NASD’s net profit margin to 23.5% from 35.9% a year earlier.
Rights Issue to Fund Expansion
NASD’s rights issue opened on Sept. 30 and closes on Nov. 6. Existing shareholders can subscribe for four new shares for every five held at the qualification date, at ₦25 per share.
The offer would increase issued shares from 600 million to 1.08 billion if fully subscribed.
The largest allocation—₦8.17 billion—will go toward portfolio investments in lieu of future market-development activities.
Cloud-trading systems and support is allocated ₦300 million.
NASD’s growth plan centers on digitalization through its OTC market, NASD Enterprise Portal, VentureRamp crowdfunding platform and NASD Digital Securities Platform. The company is licensed by the SEC as both a composite securities exchange and a digital-asset exchange.
NASD ended 2025 with ₦1.34 billion in total assets and ₦1.08 billion in equity. Cash and cash equivalents stood at ₦916.0 million, while investment securities totaled ₦267.0 million. The company reported no indebtedness in the rights circular.
The capital raise would substantially increase financial capacity. At the ₦25 rights price, NASD’s market capitalization would rise from approximately ₦15 billion before the issue to ₦27 billion after the issue, assuming full take-up.
Follow the MoneyCentral Nigeria channel on WhatsApp: Click here!
