NASD Targets Dividend Payout, Eyes Growth With New Products

The National Association of Securities Dealers (NASD) PLC has announced plans in taking significant steps to address shareholders’ concerns about financial performance and service offerings.

Speaking at the 11th Annual General Meeting (AGM) of the NASD PLC in Lagos, Chairman of NASD, Mr. Kayode Falowo, highlighted the Exchange’s focus on delivering sustainable profitability and ensuring a return on investment for its shareholders.

As of September 20, 2024, the NASD Securities Index had surged from 927.47 in December 2023 to 2,227.73, reflecting an impressive 140 percent  growth. Additionally, the market capitalisation grew by 143 percent, from N1.26 trillion to over N3 trillion. The value of traded securities also witnessed a notable 42.5 percent increase, climbing from N37.58 billion to N53.5 billion over 38 weeks. The number of deals executed during this period rose to 5,821, a significant jump from the 3,838 deals recorded throughout 2023.

Despite a N69.6 million loss as of December 31, 2023, Mr. Falowo expressed optimism about the company’s financial outlook, projecting a net income of approximately N400 million by the end of 2024.

“The steps we have taken to enhance our service offerings, alongside our focus on diversification, are starting to bear fruit,” he said.

The Exchange has been focusing on the introduction of new products to attract younger investors and broaden its market reach. Among these initiatives is the SEC-approved Digital Securities solutions, which will allow participants to trade digital securities on NASD’s platform.

“This will attract younger generations in Nigeria and beyond,” Mr. Falowo noted, stating that NASD has also launched a mobile app to provide full digital access to its services.

Additionally, the NASD recently gained regulatory approval to trade commercial papers (CPs), a move Mr. Falowo described as a ‘game changer’ for the market. He commended the Securities and Exchange Commission (SEC) for supporting this initiative and expressed optimism that further products would receive approval soon.

NASD is also focusing on partnerships to expand its market offering. Mr. Falowo disclosed that the Exchange is in discussions with major players in the creative industry to launch products that will channel capital into this sector. This move aims to position NASD as a key platform for funding creative projects, contributing to both the industry and the nation’s economy.

NASD Managing Director (MD)/Chief Executive Officer (CEO), Mr. Eguarekhide Longe, also provided insights into the company’s market diversification strategy, which began in 2022. He noted that while the company faced losses in 2023, it had managed to mitigate its losses through tax strategies in 2022.

“Building a market platform is not as straightforward as it seems, but we have made significant strides,” he said.

Mr. Longe emphasised the importance of NASD’s digital offerings, which provide greater convenience and flexibility to investors.

“We are leveraging blockchain technology to offer liquidity in special market segments, and we expect the first issuances by year-end,” he stated.

The NASD’s partnerships with bodies like the Lagos Chamber of Commerce and Industry (LCCI), the Manufacturers Association of Nigeria (MAN), and the Bank of Industry (BoI) aim to attract more small and medium enterprises (SMEs) to the platform, further expanding its reach.

The General Secretary of the Independent Shareholders Association of Nigeria (ISAN), Mr. Chibuzor Eke, commended NASD’s efforts, particularly in terms of its profit growth and dividend outlook.

He urged shareholders to remain patient while the management continues to improve its cost management strategies and enhance the Exchange’s profitability.