Economy
NGX Group’s Profit Rises 82.4% in Six Months
By Adedapo Adesanya
Nigerian Exchange (NGX) Group Plc has recorded an 82.4 per cent growth in profit in the first six months of the year, rising to N820.167 million from N449.658 million in H1 2021.
This information was contained in the NGX group’s unaudited results for the half-year ended June 30, 2022, which noted that revenue rose by 140.4 per cent to N3.823 billion during the period from N1.59 billion in 2021.
Highlights of the result included gross earnings of 138.3 per cent improvement to N4.22 billion from N1.77 billion, driven by 165.1 per cent growth in treasury investment income (26.6 per cent of revenue) to N1,017.4 million in June 2022 relative to N383.7 million in the comparative period in 2021 driven largely by relatively higher yields on the Group’s treasury bills, bonds and fixed deposit investments.
There was a 198.4 per cent growth in transaction fees (60.7 per cent of revenue) to N2.3 billion in June 2022 from N777.7 million recorded in June 2021 due to a significant increase in trading activities in the Exchange.
The company also saw an 18.6 per cent increase in listing fees (9.5 per cent of revenue) to N363.8 million in June 2022 from N306.8 million in June 2021 buoyed by improved listing on the Exchange in the first half of 2022 relative to the first half of 2021.
Rental income (1.4 per cent of revenue) earned from NGX Real Estate lease of office floor spaces recorded a 60.5 per cent increase from N32.2 million in June 2021 to N51.7 million.
However, there was a 15.4 per cent decline in other fees (1.8 per cent of revenue) to N69.7 million in June 2022 from N82.4 million in June 2021 which represents rental income from the trading floor, annual charges from brokers, dealing license and membership fees earned by the Group.
There was a 119.6 per cent increase in other income (9 per cent of gross earnings) driven primarily by a 376.5 per cent improvement in market data income (56 per cent of other income) to N220.94 million from N46.3 million reported in June 2021 which is made up of technology income, other sub-lease income, and penalty fees.
There was a 15.99 per cent growth in other operating income (31 per cent of other income) from N105.6 million in June 2021 to N122.5 million in June 2022.
Also, total expenses grew by 102.6 per cent from N1.9 billion in June 2021 to N3.9 billion in June 2022 primarily driven by a 231.6 per cent growth in operating expenses (59.1 per cent of total expenses) to N2.3 billion from N702.9 million in June 2021. This was largely as a result of a finance cost (57 per cent of operating expenses) of N1.3 billion related to a term loan taken during the period. Personnel expenses (34.4 per cent of total expenses) also grew by 27 per cent from N1.01 billion in June 2021 to N1.35 billion during the period under review.
The exchange’s made an operating profit of N273.2 million in June 2022 compared to an operating loss of N177.2 million in June 2021, as a result of 138.3 per cent growth in gross earnings.
Profit before income tax grew by 134.4 per cent to N1.22 billion in June 2022 from N521.9 million in the corresponding period in 2021 due to an impressive growth in the top line which was more than sufficient to mitigate the impact of the increases in key expense lines.
Despite an increase in effective tax rate to 32.9 per cent relative to 13.8 per cent in June 2021, profit after income tax grew by 82.4 per cent to N820.2 million from N449.7 million. This resulted in a decline in profit after tax margin to 19.5 per cent from 25.4 per cent recorded in June 2021.
Total assets rose by 59.9 per cent to N39.8 billion from N24.9 billion in December 2021, driven primarily by 91.3 per cent growth in investment in associates to N31.99 billion from N14.8 billion in Dec. 2021, and 116.8 per cent growth in Cash and Cash equivalent to N4.3 billion from N2.2 billion in December 2021.
Total liabilities recorded a 394.7 per cent increase from N3.8 billion in December 2021 to N18.6 billion as a result of a N14.5 billion term loan used to facilitate the increase in investment in select associates.
Speaking on the result, the Group Managing Director/Chief Executive Officer, Mr Oscar Onyema said, “In 2021, we took strategic steps to reorganise our business by laying the foundation for the rebirth of our franchise as we became a fully-fledged for-profit making company with a clear focus on maximizing resources and improving stakeholder returns.
“Our performance in the first half of 2022 is a testament to our ability to deliver long-term value. We recorded impressive growth in our top line to deliver a profit before tax of N1.22 billion despite the peculiar challenges inherent in our operating environment.
“Our goal remains to sustain our position as a leading integrated market infrastructure group in Africa, by diversifying our revenue streams, and identifying and investing in new businesses. We remain focused on building formidable businesses through broader and deeper involvement in every sphere of the capital market value chain through informed investments in profitable verticals and enhanced risk management practices, without losing sight of emerging opportunities in unrelated businesses within the Sub-Saharan African region.”
By Dipo Olowookere
A new report by Atmos has revealed that Nigeria is not among the 10 most cryptocurrency-obsessed countries in the world despite a growing interest in digital assets among citizens.
In the report made available to Business Post, it was disclosed that the United Arab Emirates (UAE) is the most crypto-obsessed country in 2025, with over a quarter of its population owning at least a digital coin.
It was discovered that the country has exceptional adoption growth at 210 per cent and moderate searches despite having minimal Bitcoin ATM infrastructure.
Following is Singapore with a score of 97.5, with nearly a quarter of its population having cryptocurrency, and has seen a 150 per cent increase in adoption. With 160,000 monthly crypto searches, Singapore maintains its reputation as one of the most engaged markets in the space despite lacking any Bitcoin ATMs.
The United States was third with an ownership rate of 15.5 per cent, though leading in Bitcoin ATMs, housing nearly 30,000 nationwide. It also records the highest number of crypto searches, surpassing 4.2 million monthly, indicating a continued mainstream interest in digital assets.
The fourth place was Canada though it has an adoption growth rate at 225 per cent, with 10.1 per cent of its population now holding cryptocurrency. It hosts the second-largest Bitcoin ATM network globally with 3,561 machines, dramatically fewer than the US but thousands more than any previous country.
Turkey secured the fifth spot with crypto ownership of 19.3 per cent, and a monthly search rate of 802,000. While adoption growth of 135 per cent is slightly lower than other top-ranked countries, Turkey’s increasing reliance on digital assets amid economic uncertainty highlights its strong position in the crypto market.
The sixth was Germany and adoption growth rate at 225 per cent, with over one million crypto-related searches per month, Switzerland ranked seventh, Australia occupied eighth place, Argentina ranked ninth and South Korea occupied the 10th place.
“Cryptocurrency adoption is not just about investment trends. It is reshaping financial systems worldwide. In some regions, it is a hedge against inflation and currency instability, while in others, it is a step toward a more digitized economy.
“What truly drives adoption is not just interest but accessibility. When regulatory clarity, payment integration, and real-world utility align, crypto moves from speculation to a fundamental part of everyday transactions.
“As global financial landscapes shift, the countries embracing this evolution will be the ones setting the standard for the future of digital finance,” the chief executive of Atmos, Mr Nick Cooke, said.
By Modupe Gbadeyanka
A leading technology firm, Sage Grey Technologies, has reaffirmed its commitment to driving financial inclusion, SME growth and technological innovation through strategic partnerships and product development.
The firm, alongside its sister company, Sage Grey Finance, said it is making efforts to expand financial access for SMEs, drive technological advancements, and contribute to sustainable economic development through solutions.
“We are committed to building technology solutions that not only enhance business operations but also create social impact.
“Our goal is to bridge efficiency gaps in Nigeria’s digital ecosystem while ensuring that businesses and individuals benefit from technology-driven opportunities,” the Chief Operating Officer of Sage Grey Technologies, Mr Yemi Jinadu, stated.
Also, the Executive Director of Sage Grey Finance, Mr Jumo Atiba, said, “At Sage Grey Finance, we believe in the transformative power of impact financing.
“Our unique position in Nigeria’s financial ecosystem allows us to unlock opportunities that generate both financial returns and meaningful social impact.
“As a licensed and regulated entity by the Central Bank of Nigeria, we seamlessly blend profitability with social impact. Our integration into the Nigeria Inter-Bank Settlement System ensures we deliver secure, efficient financial services, setting us apart.
“Our journey is rooted in empowering businesses, fostering sustainable development, and creating enduring value for our stakeholders and communities.”
Sage Grey Technologies’ product innovations include Splitmulti, a digital marketplace that allows businesses and consumers to make bulk purchases at wholesale prices, providing cost-effective solutions for retailers and end users; Proxze, a platform that connects businesses with verified service providers, including business professionals, simplifying compliance and financial management; Adzplug, a street-level advertising solution that allows shop owners to earn passive income while giving brands direct access to local markets; and Nkiru, a customer support solution that provides corporates and SMEs with digital reception services, helping them establish a professional presence without physical office costs.
On its part, Sage Grey Finance offers a tailored SME funding scheme that enables small businesses to access financing at a highly competitive 9 per cent interest rate.
It also support small business owners through partnership with the National Association of Small and Medium Enterprises (NASME) to facilitate direct engagement with entrepreneurs, ensuring that financing solutions reach those who need them most, and improve access to capital to underserved groups such as women and youth by providing dedicated financial products designed to foster economic empowerment.
By Aduragbemi Omiyale
President Bola Tinubu has signed the Investments and Securities Act (ISA) 2025 into law, repealing the Investments and Securities Act No. 29 of 2007
The enactment of the ISA 2025 reaffirms the authority of the Securities and Exchange Commission (SEC) as the apex regulatory authority of the Nigerian capital market. The new Act also introduces transformative provisions to further align Nigeria’s market operations with international best practices.
It strengthens the legal framework of the Nigerian capital market, enhances investor protection, and introduces critical reforms to promote market integrity, transparency, and sustainable growth.
The Director-General of the SEC, Mr Emomotimi Agama, lauded the President’s assent as a transformative step for the capital market.
“The ISA 2025 reflects our commitment to building a dynamic, inclusive, and resilient capital market. By addressing regulatory gaps and introducing forward-looking provisions, the new Act empowers the SEC to foster innovation, protect investors more efficiently and reposition Nigeria as a competitive destination for local and foreign investments.
“We commend all stakeholders within and outside the capital market community for their unwavering solidarity towards the achievement of this historic milestone and solicit their continued collaboration in respect of the effective implementation of the ISA 2025 for the benefit of our economy,” he stated.
Business Post reports that the Act enhances the regulatory powers of the SEC in a manner comparable with benchmark global securities regulators. These enhanced powers and functions ensure full conformity with the requirements of IOSCO’s Enhanced Multilateral Memorandum of Understanding (EMMoU), enabling the SEC retain its Signatory A status and enhancing the overall attractiveness of the Nigerian capital market.
Other notable provisions of the ISA 2025 include:
Classification of Exchanges and inclusion of provisions on Financial Market Infrastructures– The Act classifies Securities Exchanges into Composite and Non-composite Exchanges. A Composite Exchange is one in which all categories of securities and products can be listed and traded, while a Non-composite Exchange focuses on a singular type of security or product. There are also new provisions on Financial Market Infrastructures such as Central Counter Parties, Clearing Houses and Trade Depositories.
Expansion of the definition and Understanding of Securities – The Act explicitly recognises virtual/digital assets and investment contracts as securities and brings Virtual Asset Service Providers (VASPs), Digital Asset Operators (DAOPs) and Digital Asset Exchanges under the SEC’s regulatory purview.
Comprehensive Insolvency Provisions for Financial Market Infrastructures – The Act introduces provisions that exempt transactions facilitated through or otherwise involving Financial Market Infrastructures from the application of general insolvency laws.
Management of Systemic Risk – The Act introduces provisions for the monitoring, management and mitigation of systemic risk in the Nigerian capital market.
Expansion of the Category of Issuers to the Public– The Act expands the categories of issuers, as a key step towards the introduction of a wide range of innovative products and offerings as well as the facilitation of “commercial and investment business activities”, subject to the approval of the Commission and other controls stipulated in the Act.
Legal Framework for Commodities Exchanges – The Act contains a new Part which provides for the regulation of Commodities Exchanges and Warehouse Receipts. These provisions are essential to allow for the development of the entire gamut of the Commodities ecosystem.
Issuance of Securities by Sub-Nationals and their Agencies– Salient provisions of the Act address existing restrictions in respect of raising of funds from the capital market by Sub-Nationals to allow for greater flexibility in this regard.
Transparency in Securities Transactions – The Act introduces the mandatory use of Legal Entity Identifiers (LEIs) by participants in capital market transactions. This stipulation is designed to improve transparency in the conduct of securities transactions.
Enforcement Against Illegal Investment Schemes – The Act expressly prohibits Ponzi Schemes and other unlawful investment schemes while prescribing stringent jail terms and other sanctions for the promoters of such schemes.
Strengthening the Investments and Securities Tribunal– The Act amends some key provisions in the repealed ISA 2007 pertaining to the Composition of the Tribunal, constitution of the Tribunal, qualification and appointment of the Chief Registrar as well as the jurisdiction of the Tribunal to enhance the ability of the Tribunal to optimally discharge its mandate.
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