Economy
See Transaction Fees Charged on NASD OTC Exchange
By Adedapo Adesanya
Like on the Nigerian Stock Exchange (NSE), the trading of equities on the NASD Over-the-Counter (OTC) Securities Exchange attracts some certain fees charged for the completion of any transaction.
These fees are charged by the exchange, the Securities and Exchange Commission (SEC), the Central Securities Clearing System (CSCS) and the stockbroker through which the trade is done.
To ensure transparency and uphold the integrity of the capital market, the apex regulator in the sector, SEC, has approved maximum charges these bodies can get from execution of any buy or sell transaction on the NASD.
In the template obtained by Business Post, to purchase equities on the NASD Exchange, the platform takes 0.25 percent of total value of the shares purchased by an investor. In addition, the buyer of the securities pays an extra 5 percent Value Added Tax (VAT). This amounts to a total of 0.2625 percent fees charged by NASD on the transaction.
Also, SEC is entitled to a 0.20 percent fee on the same buy transaction with no VAT charged this time.
In addition, the brokerage firm, which helps in the purchase of the equities, charges not more than 1.350 percent of the total value of the securities being purchased by the investor, with another 5 percent VAT charged. This then amounts to a total of 1.4175 percent.
What this now means is that to purchase shares on the NASD Exchange platform, you will be required to pay a total of 1.88 percent of the total value of the transaction.
To illustrate this better, if an investor buys shares worth N100,000 through a stockbroker on NASD, he would need to pay N1,880 extra as purchasing fee to the exchange, SEC and the broker, with N262.50 going to NASD, N200 to SEC and the remaining N1417.50 given to the brokerage company.
Now, to sell your shares on the NASD OTC Exchange, the transaction fee is slightly higher. Hey, before you have a heart attack, the increase is a meagre 0.01 percent.
The NASD, whose platform the trading is carried out, gets 0.25 percent of the total value of the shares to be sold with an additional 5 percent VAT, totalling 0.2625 percent.
However, SEC is exempted from any percentage when a sale order is executed. It means the commission charges no fee for selling your securities.
But the CSCS, which was left out in the buy order, charges 0.20 percent of what you are selling with an additional 5 percent VAT. In all, the agency takes 0.21 percent from the deal.
Also, just like when purchasing, the brokerage gets a total percent capped at 1.350 percent, with a 5 percent VAT which amounts to a total of 1.4175 percent.
In all, an investor is charged 1.89 percent of whatever he plans to sell on NASD by the different bodies.
This means if you want to offload N70,000 from your investment portfolio on NASD, you will need to have N1,323 deducted from the amount, with N183.75 going to NASD, N147.00 to the CSCS and N992.25 to the broker.
Note that from January 2020, VAT would be increased to 7.5 percent. In addition, brokerage fee is capped at 1.35 percent of consideration subject to a minimum charge of N500, while the NASD Alert fee is N4.
By Dipo Olowookere
For the eighth straight session, the Nigerian Exchange (NGX) closed lower, losing 0.32 per cent at the close of business on Thursday as a result of continued sell-offs.
Yesterday, the financial and energy sectors came under selling pressure as investors’ appetite for domestic equities waned, with attention turning to the 2027 presidential campaigns, which kicked off on Wednesday.
The energy index shed 2.49 per cent, the insurance sector depreciated by 0.79 per cent, and the banking segment declined by 0.41 per cent. But the consumer goods space gained 0.10 per cent, while the industrial goods counter closed flat.
When the market closed for the day, the All-Share Index (ASI) contracted by 712.67 points to 240,037.80 points from 240,750.47 points, and the market capitalisation decreased by N439 billion to N154.978 trillion from N155.417 trillion.
International Energy Insurance slumped by 9.85 per cent to N4.30, Coronation Insurance dropped 9.84 per cent to trade at N2.20, Fortis Global slipped by 9.76 per cent to N1.85, AVA Capital crashed by 7.89 per cent to N7.00, and Zichis shrank by 7.36 per cent to N17.00.
On the other side, Haldane McCall rose by 9.38 per cent to N3.85, Trans-Nationwide Express jumped by 8.90 per cent to N3.06, McNichols appreciated by 8.33 per cent to N5.20, Cutix gained 2.56 per cent to close at N2.40, and Veritas Kapital expanded by 1.52 per cent to N1.34.
Business Post reports that Customs Street recorded 14 advancing stocks and 29 declining stocks, representing a negative market breadth index and weak investor sentiment.
A total of 2.9 billion shares worth N34.0 billion were transacted in 34,725 deals during the session versus the 1.2 billion shares valued at N37.8 billion traded in 34,546 deals at midweek. This showed that the trading value moderated by 10.05 per cent, while the trading volume and number of deals increased by 141.67 per cent and 0.59 per cent apiece.
Fortis Global Insurance was on top of the activity chart yesterday, with a turnover of 2.6 billion equities valued at N5.2 billion. Sterling Holdings exchanged 28.1 million shares worth N211.4 million, Trans-Nationwide Express transacted 21.7 million stocks for N66.2 million, UBA sold 17.9 million equities worth N803.7 million, and First Holdco traded 15.7 million shares valued at N2.0 billion.
By Adedapo Adesanya
Oil jumped more than 2 per cent on Thursday to its highest level in nearly a month, after US President Donald Trump warned of retaliation against nations supporting Iran.
Brent crude futures gained $2.16 or 2.4 per cent to trade at $93.78 a barrel, while the US West Texas Intermediate (WTI) crude futures for September rose by $2 or 2.3 per cent to $87.83 a barrel.
President Trump has threatened sweeping economic measures against Iran, warning countries that provide Iran with “any type of lifeline” that they could face severe consequences.
The American President described the planned campaign as “economic warfare and isolation on an unprecedented scale,” as the US seeks to intensify pressure on Tehran nearly six months into the conflict.
US Treasury Secretary Scott Bessent said the Trump-led administration would impose what he called the “toughest sanctions in history” on Iran and urged China and other countries to cooperate with the campaign.
Mr Bessent said he would hold a press conference on Monday to provide details of the measures, which he said would complement the US blockade of Iran.
Concerns about stricter sanctions enforcement against Iran added to anxiety about the risk to supply in the Middle East.
The economic offensive comes as the war, which began on February 28 after the US and Israel launched military strikes on Iran, has killed thousands of people and severely disrupted energy supplies.
Iran’s blockade of the Strait of Hormuz, a key route for global oil and gas shipments, and attacks on energy infrastructure across the Middle East have sharply reduced the flow of energy to international markets.
The latest US threats mark an escalation in the US’s economic pressure on Iran, with Trump also warning countries that continue to trade with or support Iran that they could face punitive measures. Iran has dismissed the campaign as “economic terrorism” and a continuation of failed US policies.
Shipping traffic through the Strait of Hormuz remains far below pre-war levels, according to the latest shipping data. Prior to the Iran war, shipments equal to about one-fifth of global consumption moved through the waterway.
This week, the United Arab Emirates suspended all financial and economic transactions with Iran until further notice, highlighting the fraught ties between the major Gulf Arab oil producer and Iran. The war has also impacted the supply of refined fuels and drawn down inventories, with less crude available to refiners.
By Adedapo Adesanya
The Nigeria Employers’ Consultative Association (NECA) has called on state and local governments to account for the N10.4 trillion they received from resources generated following the removal of the petrol subsidy.
The Director-General of NECA, Mr Adewale-Smatt Oyerinde, made the call on Channels Television’s Sunrise Daily on Thursday morning, a day after the Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, disclosed details of the financial impact of the federal government’s economic reforms.
Mr Oyedele had said the removal of the petrol subsidy and reforms to the foreign exchange market mobilised N15.8 trillion for the Federation between June 2023 and December 2025.
According to the minister, the federal government received N5.4 trillion of the amount, while N10.4 trillion was distributed to state and local governments through the Federation Account.
Reacting to the disclosure, Mr Oyerinde said the states and local governments should now provide details of how the funds they received were utilised.
He particularly called on state commissioners for finance to disclose the amounts their respective governments received and how the funds were spent.
“Absolutely. I think it should trickle down. The commissioners of finance in states, you come out and also say, this is how much we’ve received; this is how much we have spent,” he said on the television programme.
Mr Oyerinde compared the expected disclosure by governments to the financial reporting obligations of private businesses, where companies present audited accounts and performance reports to shareholders.
“We believe strongly that as private businesses, at the end of the year you audit your accounts, you present your scorecard to your shareholders to gauge what we have done. The Minister of Finance has led the way now, and the states also should follow,” he said.
The NECA director-general urged state governments to provide a breakdown of the funds received, the challenges encountered and how the money was deployed.
“And so this is how much we have received. These are the constraints we face, and this is how we have expended this amount. I think we should move progressively towards transparency in government,” he said.
Mr Oyerinde commended the Federal Government for publicly disclosing details of its finances, describing the presentation by the finance minister as a step towards greater transparency in public administration.
He said the level of detail provided by Mr Oyedele would enable citizens and other stakeholders to better scrutinise government spending and assess the impact of the reforms.
The NECA boss also said greater disclosure by the sub-national governments would allow citizens to engage state and local governments more constructively on the use of public funds.
“I also put citizens, and I must say this, citizens are also in a good position now to engage constructively, engage the state governments constructively, and also engage local governments constructively, because that is where development should actually start,” Mr Oyerinde said.
