Strong market activity and rising transaction fees drive revenue past ₦7 billion, with stock extending rally….
Nigerian Exchange Group Plc has kicked off 2026 with a powerful earnings performance, posting a 140.5% surge in pre-tax profit to ₦5.98 billion in the first quarter, underscoring renewed momentum in Nigeria’s capital market.
The Group’s latest financial results for the period ended March 31, 2026, reveal a sharp rise in investor activity, which significantly boosted transaction-driven income and overall profitability.
Revenue more than doubled year-on-year, climbing by 102.5% to ₦7.22 billion from ₦3.56 billion in the same period last year. The growth was largely fueled by a spike in transaction fees, reflecting increased trading volumes and stronger participation across the Exchange.
Transaction fee income alone jumped to ₦5.80 billion, a substantial leap from ₦2.01 billion recorded in Q1 2025, highlighting the scale of activity returning to the equities market. Listing fees also recorded steady growth, rising to ₦734 million, pointing to continued interest in capital raising and new listings.
The strong top-line performance flowed through to operating profit, which rose by 84.1% to ₦3.95 billion. However, the cost side of the business also expanded, with operating expenses increasing by 58.7% to ₦3.85 billion, driven mainly by higher personnel and administrative costs.
Despite the rising expenses, profitability remained robust. A major boost came from equity-accounted investees, which contributed ₦2.03 billion, helping to lift pre-tax earnings to nearly ₦6 billion.
Tax obligations, however, surged sharply, rising more than fourfold to ₦1.89 billion, slightly tempering net earnings growth. Even so, post-tax profit climbed by 93.9% to ₦4.09 billion, reflecting the strength of the Group’s core operations.
On the balance sheet, total assets increased by 7.5% to ₦76.33 billion, supported by higher investments in securities and stronger positions in associated companies. Total liabilities rose by 11.4% to ₦17.65 billion, largely due to increased tax liabilities, while shareholders’ equity grew by 6.4% to ₦58.68 billion, backed by retained earnings.
Cash flow from operations also strengthened significantly, rising by 137.5% to ₦3.56 billion, indicating improved efficiency and earnings quality. However, investing activities recorded a net outflow of ₦3.50 billion, reflecting increased allocation to financial assets.
In the equities market, investors responded positively to the results. The company’s stock gained about ₦5 in intraday trading on April 30, 2026, pushing its price to around ₦160 per share, a 3.2% increase above its adjusted base.
The rally continues a strong upward trend for the stock, which has risen approximately 121% year-to-date from its opening price of ₦70, placing it among the top-performing equities on the Exchange. The Group’s market capitalisation now stands at roughly ₦406 billion.
Shareholders are also benefiting from improved returns. The company declared a final dividend of ₦2.00 per share, bringing total dividends for the year to ₦3.00, in addition to a previously paid interim dividend. It also announced a 1-for-3 bonus share distribution.
The broader outlook remains positive, with the Group’s performance suggesting continued growth momentum, supported by active trading, strong fee generation, and contributions from associates.
However, rising operating costs and increasing tax exposure could pose challenges if not carefully managed.
As market activity remains elevated, the Nigerian Exchange Group appears well-positioned to sustain its growth trajectory, provided it can balance expansion with cost discipline and maintain investor confidence in the months ahead.
