By Peter Egwuatu

NASD PLC has expressed its commitment to engaging with the Securities and Exchange Commission (SEC) to attract diaspora investors following the introduction of the Non-Resident Bank Verification Number (NRBVN) by the Central Bank of Nigeria (CBN).

Speaking at a press conference in Lagos, Eguarekhide Longe, Managing Director/CEO of NASD PLC, praised the CBN for launching the NRBVN, describing it as a gateway to a borderless Nigerian capital market. He emphasized the potential of the initiative to match liquidity with the content NASD plans to introduce into the market.

“We are mindful of the fact that Nigeria requires a new tribe of investors. The launch of the NRBVN is an invitation to a borderless Nigerian capital market, which we will promote to attract diaspora investors. We intend to engage the SEC on the modalities of using this instrument to facilitate investments in Small and Medium Scale Enterprises (SMEs) that need funding for expansion,” Longe stated.

NASD’s Performance and Market Expansion

Longe highlighted NASD’s growth since its inception in 2013 as an Over-The-Counter (OTC) Securities Exchange licensed by the SEC to trade securities of public unlisted companies. He noted that NASD now accommodates over 40 securities across diverse sectors, including Financial Services, Consumer Goods, and Oil & Gas.

“NASD has expanded to become a multi-asset Exchange, operating multiple platforms to meet the capital needs of companies at various growth stages, as well as investors with specific investment criteria,” he added.

In terms of financial performance, NASD achieved remarkable growth in 2024 despite economic challenges:

NASD Securities Index (NSI): Increased by 223.75% Year-on-Year (Y/Y) to 3,002.68 points in December 2024 from 927.77 points in December 2023.

Market Capitalisation: Declined by -18.12% Y/Y.

Trading Activities: Grew significantly by 127.31%, while the value of trades surged by 176.72% Y/Y, amounting to N103.96 billion.

Aradel Holdings PLC: Accounted for 79% of the trading value before its migration to the main board of the Nigerian Exchange Limited (NGX).

Revenue Growth

Listing/Delisting Fees: N252 million, representing a 255% increase from 2023, with 70% attributed to the exit of Aradel Holdings PLC. Other significant contributors included Fan Milk, Great Nigeria Insurance, Okitipupa Oil, and Impresit Bakolori.

Registration Fees: N24 million, reflecting an 11% improvement from 2023.

Focus on Market Growth and Infrastructure

Longe emphasized NASD’s commitment to market origination and innovation, highlighting the recent successful listing of Infrastructure Credit Guarantee Company PLC. He stressed that unlocking infrastructure is key to driving innovation and growth in the Nigerian capital market.

“We realize that economic development is about building things—whether it’s brick-and-mortar construction, agricultural processing zones, industrial steel foundries, or vital social infrastructures like education and healthcare. This is NASD’s mission: to build the Nigerian capital market,” Longe remarked.

Financial Performance and Outlook for 2025

For Q1 2025, NASD recorded strong financial growth:

Operating Profit: N164.0 million, compared to a loss of N44.1 million in Q1 2024.

Unaudited Profit: N212.5 million, up from a loss of N32.7 million in Q1 2024.

Longe projected a robust Q2 2025, noting that April began on a positive trajectory, with plans to launch new products pending SEC approval. These products are set to unlock value in the Real Estate Sector and the Nigerian Cooperative Societies, further broadening the Nigerian capital market.

“We see 2025 closing with as strong, if not a stronger performance than 2024,” Longe concluded.