Economy

See Transaction Fees Charged on NASD OTC Exchange

Published

6 years ago

07/12/2019

Nigeria's Unlisted Securities Market Sheds 0.78%, NASD Shares up 8.31%

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.

Economy

Customs Street Chalks up 0.12% on Santa Claus Rally

Published

3 hours ago

25/12/2025

Dipo Olowookere

By Dipo Olowookere

The Nigerian Exchange (NGX) Limited witnessed Santa Claus rally on Wednesday after it closed higher by 0.12 per cent.

Strong demand for Nigerian stocks lifted the All-Share Index (ASI) by 185.70 points during the pre-Christmas trading session to 153,539.83 points from 153,354.13 points.

In the same vein, the market capitalisation expanded at midweek by N118 billion to N97.890 trillion from the preceding day’s N97.772 trillion.

Investor sentiment on Customs Street remained bullish after closing with 36 appreciating equities and 22 depreciating equities, indicating a positive market breadth index.

Guinness Nigeria chalked up 9.98 per cent to trade at N318.60, Austin Laz improved by 9.97 per cent to N3.20, International Breweries expanded by 9.85 per cent to N14.50, Transcorp Hotels rose by 9.83 per cent to N170.90, and Aluminium Extrusion grew by 9.73 per cent to N16.35.

On the flip side, Legend Internet lost 9.26 per cent to close at N4.90, AXA Mansard shrank by 7.14 per cent to N13.00, Jaiz Bank declined by 5.45 per cent to N4.51, MTN Nigeria weakened by 5.21 per cent to N504.00, and NEM Insurance crashed by 4.74 per cent to N24.10.

Yesterday, a total of 1.8 billion shares valued at N30.1 billion exchanged hands in 19,372 deals versus the 677.4 billion shares worth N20.8 billion traded in 27,589 deals in the previous session, implying a slump in the number of deals by 29.78 per cent, and a surge in the trading volume and value by 165.72 per cent and 44.71 per cent apiece.

Abbey Mortgage Bank was the most active equity for the day after it sold 1.1 billion units worth N7.1 billion, Sterling Holdings traded 127.1 million units valued at N895.9 million, Custodian Investment exchanged 115.0 million units for N4.5 billion, First Holdco transacted 40.9 million units valued at N2.2 billion, and Access Holdings traded 38.2 million units worth N783.3 million.

Economy

Yuletide: Rite Foods Reiterates Commitment to Quality, Innovation

Published

3 hours ago

25/12/2025

Adedapo Adesanya

By Adedapo Adesanya

Nigerian food and beverage company, Rite Foods Limited, has extended warm Yuletide greetings to Nigerians as families and communities worldwide come together to celebrate the Christmas season and usher in a new year filled with hope and renewed possibilities.

In a statement, Rite Foods encouraged consumers to savour these special occasions with its wide range of quality brands, including the 13 variants of Bigi Carbonated Soft Drinks, premium Bigi Table Water, Sosa Fruit Drink in its refreshing flavours, the Fearless Energy Drink, and its tasty sausage rolls — all produced in a world-class facility with modern technology and global best practices.

Speaking on the season, the Managing Director of Rite Foods Limited, Mr Seleem Adegunwa, said the company remains deeply committed to enriching the lives of consumers beyond refreshment. According to him, the Yuletide period underscores the values of generosity, unity, and gratitude, which resonate strongly with the company’s philosophy.

“Christmas is a season that reminds us of the importance of giving, togetherness, and gratitude. At Rite Foods, we are thankful for the continued trust of Nigerians in our brands. This season strengthens our resolve to consistently deliver quality products that bring joy to everyday moments while contributing positively to society,” Mr Adegunwa stated.

He noted that the company’s steady progress in brand acceptance, operational excellence, and responsible business practices reflects a culture of continuous improvement, innovation, and responsiveness to consumer needs. These efforts, he said, have further strengthened Rite Foods’ position as a proudly Nigerian brand with growing relevance and impact across the country.

Mr Adegunwa reaffirmed that Rite Foods will continue to invest in research and development, efficient production processes, and initiatives that support communities, while maintaining quality standards across its product portfolio.

“As the year comes to a close, Rite Foods Limited wishes Nigerians a joyful Christmas celebration and a prosperous New Year filled with peace, progress, and shared success.”

Economy

Naira Appreciates to N1,443/$1 at Official FX Market

Published

3 hours ago

25/12/2025

Adedapo Adesanya

By Adedapo Adesanya

The Naira closed the pre-Christmas trading day positive after it gained N6.61 or 0.46 per cent against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Wednesday, December 24, trading at N1,443.38/$1 compared with the previous day’s N1,449.99/$1.

Equally, the Naira appreciated against the Pound Sterling in the same market segment by N1.30 to close at N1,949.57/£1 versus Tuesday’s closing price of N1,956.03/£1 and gained N2.94 on the Euro to finish at N1,701.31/€1 compared with the preceding day’s N1,707.65/€1.

At the parallel market, the local currency maintained stability against the greenback yesterday at N1,485/$1 and also traded flat at the GTBank forex counter at N1,465/$1.

Further support came as the Central Bank of Nigeria (CBN) funded international payments with additional $150 million sales to banks and authorised dealers at the official window.

This helped eased pressure on the local currency, reflecting a steep increase in imports. Market participants saw a sequence of exchange rate swings amidst limited FX inflows.

Last week, the apex bank led the pack in terms of FX supply into the market as total inflows fell by about 50 per cent week on week from $1.46 billion in the previous week.

Foreign portfolio investors’ inflows ranked behind exporters and the CBN supply, but there was support from non-bank corporate Dollar volume.

As for the cryptocurrency market, it witnessed a slight recovery as tokens struggled to attract either risk-on enthusiasm or defensive flows.

The inertia follows a sharp reversal earlier in the quarter. A heavy selloff in October pulled Bitcoin and other coins down from record levels, leaving BTC roughly down by 30 per cent since that period and on track for its weakest quarterly performance since the second quarter of 2022. But on Wednesday, its value went up by 0.9 per cent to $87,727.35.

Further, Ripple (XRP) appreciated by 1.7 per cent to $1.87, Cardano (ADA) expanded by 1.2 per cent to $0.3602, Dogecoin (DOGE) grew by 1.1 per cent to $0.1282, Litecoin (LTC) also increased by 1.1 per cent to $76.57, Solana (SOL) soared by 1.0 per cent to $122.31, Binance Coin (BNB) rose by 0.6 per cent to $842.37, and Ethereum (ETH) added 0.3 per cent to finish at $2,938.83, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.