The Nigerian Exchange Limited (NGX) has reported a 44.6% increase in listing fees for Q1 2023, amounting to N179.2 billion. This is a significant rise from the N123.9 million recorded in the same period in 2022.
Meanwhile, the group recorded a 14.2% YoY decline in gross earnings to N1.6 billion, driven by a 20.5% dip in revenue following a period of high economic and socio-political uncertainty. However, other income grew by 57.7%, offsetting the drop in revenue.
The group’s top-line revenue fell by 20.5% to N1.3 billion due to reduced business transactions and consumer spending following the general election and the Central Bank of Nigeria’s attempt to phase out the country’s old higher denomination of banknotes.
The transaction fees, which accounted for 51.5% of revenue, also dropped by 30.6% YoY to N685.9 million due to reduced business activities. Treasury investment income (31.1% of revenue) dropped to N414.7 million in Q1 2023, driven by relatively lower yields on the group’s treasury investment portfolio.
Despite the challenging macroeconomic environment, NGX Group Plc’s Group Managing Director, Oscar Onyema, expressed his satisfaction with the results. He said that despite cash and energy scarcity, political tension from the 2023 elections, the group remained resilient.
He attributed the 109% increase in net profit to the implementation of cost-saving measures that minimised the impact of revenue reduction. Onyema said that the group would continue to invest in innovative marketing strategies to appeal to changing consumer preferences and explore opportunities to expand its product line, portfolio mix, and penetrate new markets