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NGX Group’s profit after tax rose 86.4 percent to ₦14.7bn in the nine months ended September 2026.
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Transaction fee revenue more than doubled to ₦20.7bn, driving overall revenue growth.
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The cost-to-income ratio improved to 49.7 percent despite a 56.8 percent increase in operating expenses.
October 27, (THEWILL) – Nigerian Exchange Group Plc’s profit before tax rose 83.3 percent to ₦20.6 billion in the nine months ended September 2026, as transaction fees more than doubled amid increased trading activity and wider investor participation.
The Group’s profit before tax increased from ₦11.2 billion in the corresponding period of 2025, while profit after tax climbed 86.4 percent to ₦14.7 billion from ₦7.9 billion.
Revenue grew 79.8 percent to ₦27.3 billion from ₦15.2 billion, reflecting stronger transaction fee income and continued growth in listing fees.
The results show how increased activity in Nigeria’s capital market is translating into earnings for its exchange group. However, the performance also comes against a sharp rise in operating expenses and a significant rally in equities during the period.
Transaction Fees Drive Revenue Growth
Transaction fees rose 112.4 percent to ₦20.7 billion from ₦9.7 billion, accounting for the largest share of NGX Group’s revenue.
The Group attributed the increase to higher trading volumes and a widening investor base, with more retail investors accessing the market through digital channels for account opening and order execution.
Listing fees also increased, rising 24.4 percent to ₦3.7 billion from ₦3.0 billion, reflecting continued capital-raising activity and new admissions to the market.
The revenue growth coincided with a strong performance in listed equities. As of September 30, the NGX All-Share Index had gained 61.43 percent year-to-date, while equity market capitalisation rose from ₦99.38 trillion at the end of December 2025 to ₦163.10 trillion.
That represented an increase of ₦63.72 trillion, or 64.12 percent, in the value of listed equities.
The market rally and higher trading activity provided a favourable environment for transaction-related income. However, the Group’s results do not establish how much of the revenue increase came from digital participation alone, as higher trading volumes and broader investor participation were also contributing factors.
Expenses Rise As The Group Invests For Growth
Despite the increase in revenue, operating expenses climbed 56.8 percent to ₦14.7 billion from ₦9.4 billion.
The increase was slower than gross earnings growth of 64.8 percent, which lifted gross earnings to ₦29.6 billion from ₦17.9 billion. Consequently, the cost-to-income ratio improved to 49.7 percent from 52.3 percent. Operating profit increased 73.5 percent to ₦14.9 billion from ₦8.6 billion.
NGX Group said the higher expenses reflected investments in personnel, market infrastructure, facilities, investor education, issuer engagement and partnerships. These investments are intended to support a larger market and the Group’s technology plans, including platform modernisation, market data services and expanded digital access.
Whether those investments deliver lasting efficiency gains will depend on the Group’s ability to sustain revenue growth without allowing costs to rise at a similar or faster pace.
Another contributor to earnings was the Group’s share of profit from equity-accounted investees, which rose 69.6 percent to ₦5.7 billion from ₦3.4 billion. The Group said the increase was driven primarily by Central Securities Clearing System Plc (CSCS).
This contribution supported profit before tax beyond the earnings generated directly from the Group’s own operations.
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Shareholders Receive Higher Dividends
NGX Group reported total assets of ₦79.1 billion and shareholders’ equity of ₦61.1 billion as of September 30, 2026.
Shareholders received ₦8.2 billion in dividends during the period, an increase of 86.7 percent, alongside a one-for-three bonus share issue approved in April.
Earnings per share stood at ₦5.33, compared with a restated ₦2.68 in the corresponding period of 2025, reflecting the impact of the bonus issue on the share base.
Group Chairman, Umaru Kwairanga, said the company remained focused on expanding market participation and products while allocating resources to strengthen the capital market’s foundations.
Group Managing Director and Chief Executive Officer, Temi Popoola, said the Group would continue investing in technology, digital access, market data and partnerships across Africa.
For NGX Group, the next test is whether the increase in transaction revenue can be sustained as market conditions change. The nine-month results demonstrate stronger earnings and improved cost efficiency, but maintaining that performance will require continued investor participation and returns from its investments in technology and market infrastructure.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
