The Nigerian over-the-counter equities market recorded a landmark performance in 2025 as the NASD Securities Exchange delivered a 106% surge in total market value, driven by fresh listings, price appreciation, and improving investor sentiment. According to data released by the Exchange, total market capitalization rose sharply from ₦1.02 trillion in 2024 to ₦2.1 trillion in 2025, underscoring the growing relevance of NASD as an alternative capital-raising platform outside the main board.
The rally was reflected in the NASD Index (NDI), which climbed from 3,002.68 points to 3,543.46 points during the year. This performance highlights renewed confidence in the OTC market, particularly among issuers seeking flexibility and investors looking for diversification beyond traditional listed equities.
New listings drive market expansion
A key driver of the strong performance was the admission of new companies and instruments to the Exchange. NASD disclosed that approximately ₦1.12 trillion in new listings were added in 2025, significantly expanding the breadth and depth of available securities. Among the notable admissions were Infrastructure Credit Guarantee Company Plc (InfraCredit), Paintcom Investment Nigeria Plc, and MRS Plc.
In addition, the Exchange listed Access Bank Plc’s Rights Issue, a move that further boosted market value and trading interest. Collectively, these listings accounted for about ₦1.121 trillion in new securities during the year, highlighting steady interest from issuers seeking access to capital and visibility.
The expansion was not limited to equities alone. NASD also recorded growth in alternative funding instruments, with Commercial Paper admissions exceeding ₦34.32 billion, reflecting stronger participation from corporates and investors exploring short-term funding options in a high-interest-rate environment.
Indices and financial performance
Beyond the headline index, the NASD Pension Index (NPI) posted an exceptional rally, rising from 954.33 points to 3,002.68 points. The sharp increase reflects broader gains across pension-eligible securities on the platform and growing institutional interest in OTC instruments.
The increased activity translated into a dramatic improvement in the Exchange’s financial performance. In its half-year results for January to June 2025, NASD Plc reported fees and commissions income of ₦549.2 million, up from ₦135.8 million in the corresponding period of 2024. Listing fees accounted for the bulk of the growth, jumping to ₦331.6 million from just ₦1.2 million a year earlier, while trading commissions rose to ₦199.8 million from ₦113.7 million.
As a result, NASD recorded a pre-tax profit of ₦341.8 million, a significant turnaround from a loss of ₦62.4 million in the same period of 2024. With no tax charge, post-tax profit matched pre-tax earnings. Despite higher operating expenses—employee benefits stood at ₦173.2 million and other costs at ₦140.9 million—the Exchange still posted an operating profit of ₦235.1 million, compared with an operating loss in the prior year.
On the balance sheet, total assets increased to ₦1.4 billion from ₦1.3 billion, while retained earnings surged 184.96% to ₦526.6 million, reflecting improved profitability and balance sheet strength.
Outlook and strategic direction
Commenting on the performance, NASD’s Chief Executive Officer, Eguarekhide Longe, said the results reinforce the Exchange’s position as Nigeria’s alternative marketplace for raising capital and investing outside the traditional stock exchange. He expressed optimism about the 2026 economic outlook, citing improving macroeconomic conditions and the potential positive impact of ongoing reforms, including the newly introduced tax law.
Looking ahead, NASD said it will continue to collaborate with stakeholders to broaden market access, support entrepreneurship, and promote inclusive economic growth through innovation. With rising listings, stronger investor confidence, and expanding product offerings, the Exchange appears well-positioned to sustain momentum and further cement its role in Nigeria’s evolving capital market ecosystem.
Emmanuel Bassey is a Financial Expert that has worked in the Banking and Finance Industry for over 15+ years across different banks in Nigeria
